Crypto trade Kraken has requested a jury trial to contest the SEC’s allegations that it operated as an unregistered securities trade.
Crypto trade Kraken has requested a jury trial in response to a lawsuit filed by the U.S. Securities and Trade Fee, a court docket submitting revealed on Thursday, Sept. 12.
Kraken’s court docket submitting argues in opposition to the SEC‘s claims, asserting that the regulatory physique has overstepped its authority. The trade additionally claims the regulator’s strategy lacks due course of and fails to specify which transactions on its platform represent funding contracts.
“The SEC has no authority to manage Kraken’s digital asset buying and selling platform […] as a result of the digital property should not securities or funding contracts, and gross sales of the digital property on Kraken don’t type the premise of funding contracts, throughout the that means of the trade act.”
Kraken
Regardless of Kraken’s efforts to interact with the SEC, the company’s stance stays agency, as evidenced by its comparable lawsuits in opposition to Binance and Coinbase. The SEC’s actions have been criticized by Kraken for missing readability and equity, with the trade demanding a “jury trial for all points so triable.”
The transfer follows a California decide’s choice in late August, permitting the SEC’s case in opposition to Kraken to proceed. The SEC’s lawsuit, initiated in November 2023, accuses Kraken of working as an unregistered securities trade, dealer, vendor, and clearing company, citing over 10 tokens, together with Cardano (ADA), Algorand (ALGO), Polygon (POL), and Solana (SOL), amongst others, as unregistered securities.