The SEC is suing crypto exchange Kraken, and yesterday filed a motion to dismiss Kraken’s defenses. The SEC argues that Kraken had plenty of notice that its crypto assets were securities, and that dismissing Kraken’s defenses would streamline the legal process. Kraken has argued that it was “stonewalled” by the SEC when it attempted to register its crypto exchange, and the case centers on 11 specific cryptocurrencies.
The SEC has taken a hard stance that federal securities laws apply to digital assets offered as investments, leading to multiple enforcement actions against crypto firms. Kraken has undergone internal changes as it fights the SEC’s allegations, including the appointment of a new co-CEO. The case is ongoing.
Discuss in the comments: What are your thoughts on the SEC suing Kraken? Do you think Kraken had enough notice that its crypto assets were securities?
