Cryptocurrency Exchange Kraken to Challenge SEC Charges in Court
Cryptocurrency exchange Kraken has stated that it will fight the charges brought against it by the U.S. Securities and Exchange Commission (SEC) and respond to the complaint in court, according to the company’s chief legal officer (CLO) Marco Santori. Santori believes that the legal battle with the SEC could last for several months.
Disputing the Allegations
Santori argues that the SEC’s claims are baseless, stating that Kraken is not an exchange clearing house or a broker-dealer for investment contracts. He dismisses these allegations as entirely fabricated by the agency, emphasizing that they disagree with the SEC’s position.
Seeking Regulatory Framework
Kraken is not attempting to avoid regulation but rather advocates for a regulatory framework that is appropriate for the crypto industry. Santori highlights that other countries are developing regulatory frameworks tailored to digital asset companies and believes that this approach should be adopted in the United States as well.
Ripple Case Precedent
Santori points to Ripple’s legal victory against the SEC in July as a significant precedent. The court ruled that XRP, Ripple’s native token, should not be considered a security. Santori believes that this ruling will benefit other crypto platforms currently facing legal proceedings with the regulator.
SEC Accusations Against Kraken
The SEC has accused Kraken of commingling its funds with user assets and operating as an unregistered securities platform, broker, dealer, and clearing agency.
Hot Take: Kraken Challenges SEC Charges and Advocates for Sensible Crypto Regulation
Kraken, one of the leading cryptocurrency exchanges, is not backing down from its legal battle with the SEC. The company’s CLO, Marco Santori, strongly disputes the regulator’s allegations, labeling them as baseless and fabricated. Kraken aims to set a precedent for a sensible regulatory framework that suits the crypto industry’s unique characteristics. Santori draws inspiration from Ripple’s successful defense against the SEC, highlighting that it provides a favorable outlook for other platforms entangled in legal proceedings. As the battle unfolds, Kraken’s stance sends a message to regulators about the need for fair and appropriate regulation in the crypto space.
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