Kraken Exchange Faces SEC Lawsuit and Siege

Kraken Exchange Faces SEC Lawsuit and Siege

SEC Sues Kraken for Operating Unregistered Cryptocurrency Trading Platform

The United States Securities and Exchange Commission has turned its attention to Kraken, a US-based cryptocurrency exchange, in its ongoing regulatory crackdown. The SEC has filed a lawsuit against Kraken, alleging that it has operated an unregistered trading platform for digital currency assets, generating substantial fees and trading revenue without adhering to securities laws designed to protect investors.

SEC Targets Kraken In Ongoing Cryptocurrency Crackdown

The complaint against Payward Inc. and Payward Ventures Inc., the entities behind Kraken, states that Kraken has violated securities laws by failing to register as an exchange, clearing agency, and broker-dealer. This comes after a legal case with the SEC in February 2023, where Kraken agreed to discontinue an unregistered offering and sale of a cryptocurrency asset staking-as-a-service program.

Apollo Crypto Forecasts a Bitcoin Price of $200,000 in the Current Cycle – Here’s the Rationale

Collins Belton, a pro- cryptocurrency lawyer, believes that the recent SEC case against Kraken echoes similar states made against Coinbase. The SEC states that certain assets traded on Kraken are securities, thus alleging that Kraken operates an unregistered exchange.

Cryptocurrency Exchange Battle

The lawsuit against Kraken adds to the regulatory pressures faced by major digital currency exchanges like Coinbase and Binance. The case likewise raises concerns about the exchange’s internal practices and the  capacity impact on the broader cryptocurrency industry and future regulatory approaches.

Currently, Kraken has not officially responded to the SEC’s lawsuit, leaving numerous questions about the case’s impact on the industry.

Essential Insights for the Next Crypto Bull Run – Part 2: Key Takeaways

Hot Take: Kraken’s Legal Battle with the SEC

The lawsuit filed against Kraken by the SEC is just the latest legal battle in the ongoing effort to regulate the cryptocurrency industry in the United States. The outcome of this case will certainly have implications for how exchanges operate and how regulators approach their oversight of the industry. The verdict will undoubtedly be eagerly anticipated by everyone with an interest in future of the cryptocurrency trading in the United States. Kraken’s response and the SEC’s approach to the case will be closely watched by cryptocurrency enthusiasts, market analysts, and SEC-watchers alike.

Boosting Crypto Reach in Brazil: Nubank Teams Up with Circle and Talos, Supported by Warren Buffett
Author – Contributor at | Website

Bitro Conwell stands as an intellectual architect, weaving together the roles of crypto analyst, meticulous researcher, and editorial virtuoso with finesse. Amidst the digital intricacies of cryptocurrencies, Bitro’s insights resonate harmoniously with seekers of all stripes, showcasing a profound understanding. His ability to untangle the most complex threads within the crypto landscape seamlessly pairs his their editorial finesse, transforming intricacy into an artful tapestry of comprehension.

Bitcoin’s Market Success: InQubeta and Injective Positioned for Growth
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

Latest Crypto News

Share via
Share via