Screenshot from Kraken's promotional materials for its new wallet (CoinDesk/Kraken)

Kraken Asks Court to Dismiss SEC Claims to Avoid 'Significant Reordering' of U.S. Financial Structure

Summary

Kraken has requested a U.S. court to dismiss the SEC's claims, arguing that cryptocurrencies listed in the complaint should be treated as commodities, not securities. The SEC insists it is following its Congressional mandate to enforce the Securities Act and Exchange Act. Kraken's response focuses on the Howey test, stating that the SEC's interpretation would significantly expand its jurisdiction and should be debated in Congress, not the courts. The matter is scheduled for a hearing on June 12.