TechFlow news, November 7 — According to Coindesk, the U.S. Securities and Exchange Commission (SEC) filed a motion with the U.S. District Court for the Northern District of California seeking to dismiss three defenses raised by cryptocurrency exchange Kraken in ongoing litigation.
The SEC argued that Kraken’s defenses—claiming lack of clarity on the application of securities laws to digital assets, absence of fair notice, and the "major questions doctrine"—are all "legally untenable."
The SEC sued Kraken in November 2023, alleging that it operated illegally as an unregistered securities exchange, broker, dealer, and clearing agency.
The SEC stated that since September 2018, Kraken has unlawfully earned hundreds of millions of dollars by facilitating the buying and selling of crypto asset securities. The regulator aims to narrow the scope of the case by dismissing these defenses, conserve judicial resources, and prevent Kraken from re-litigating the same issues at every stage of the proceedings.
