Kraken Rejects SEC Allegations, Insists Crypto Assets Aren’t Securities
Kraken has refuted the SEC's allegations of selling unregistered securities, asserting that the digital assets on its platform do not qualify as securities or investment contracts. The exchange lists specific assets, including Algorand, Cosmos, and Solana, as examples. Kraken plans to pursue a jury trial against the SEC following a federal judge's ruling allowing the lawsuit to proceed. Kraken's CEO criticized the SEC's regulatory approach, while US Senator Cynthia Lummis supported the exchange, arguing for clearer crypto regulations. Kraken referenced the SEC v. W.J. Howey Co. ruling to challenge the SEC's claims. The SEC's ongoing scrutiny of crypto entities has prompted states to defend digital asset businesses against perceived overreach.
