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Crypto exchange Kraken has requested a jury trial to contest the SEC’s allegations that it operated as an unregistered securities exchange. This move came in response to a lawsuit filed by the U.S. Securities and Exchange Commission.
Kraken’s court filing argues against the SEC’s claims, asserting that the regulatory body has overstepped its authority. The exchange also claims the regulator’s approach lacks due process and fails to specify which transactions on its platform constitute investment contracts.
“The SEC has no authority to regulate Kraken’s digital asset trading platform because the digital assets are not securities or investment contracts, and sales of the digital assets on Kraken do not form the basis of investment contracts, within the meaning of the exchange act.”
Despite Kraken’s efforts to engage with the SEC, the agency’s stance remains firm. This is evidenced by its similar lawsuits against other exchanges like Binance and Coinbase. Kraken has criticized the SEC for lacking clarity and fairness, demanding a “jury trial for all issues so triable.”
This move follows a California judge’s decision in late August, allowing the SEC’s case against Kraken to proceed. The SEC’s lawsuit, initiated in November 2023, accuses Kraken of operating as an unregistered securities exchange, broker, dealer, and clearing agency. The case cites over 10 tokens, including Cardano, Algorand, Polygon, and Solana, as unregistered securities.
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