Cryptocurrency exchange Kraken recently filed a motion asking the court handling the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) against the company to be dismissed. According to information published by Bloomberg, on May 10, the exchange cited inappropriate words from the regulator as a reason why the court should nullify the process.
According to the publication, on May 9, Kraken filed a response to a letter filed last month by the SEC regarding the exchange’s motion to dismiss the lawsuit, whose main argument was that the SEC failed to identify “any investment that were (or could be) traded, brokered or settled on Kraken.”
The document highlighted that, in its allegation, the SEC used the terms “concept” and “ecosystem” of investment several times instead of “investment contract” and “company”.
In its motion filed in April, the SEC highlighted that “the words themselves do not delimit the type of security because ‘the scope of the law is not limited to the obvious and commonplace’” when citing case law.
In November last year, the SEC brought charges against exchange Kraken for allegedly operating an unregistered broker, dealer, exchange and clearing agency.
Kraken vs SEC: Exchange challenges lawsuit alleging political retaliation
When commenting on the Kraken vs SEC lawsuit, Kraken CEO Dave Ripley emphasized that the action taken against the company by the SEC is retaliation for criticism made by the exchange for regulatory excess. In a series of tweets shared on February 22, Ripley laid out “the true story of the SEC lawsuit.”
“On May 10, before the House Financial Services Committee and the House Agriculture Committee, Kraken testified about the SEC’s overreach in crypto and its flawed regulation-by-enforcement approach to policymaking. Kraken testified that this SEC strategy would not protect consumers, that Congress should create new rules for cryptography, and, crucially, that Congress should limit the SEC’s jurisdiction in favor of other agencies.”
Ripley added that, the next day, the SEC called Kraken saying it would sue the company. “Crypto innovators in the United States should not fear retaliation for their political speech. They should be free to sincerely advocate better legislation and more efficient markets.”
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Source: https://portalcripto.com.br/kraken-pede-ao-tribunal-rejeicao-do-processo-da-sec-detalhes/
