SEC Seeks to Dismiss Three of Kraken’s Key Defenses in U.S. Lawsuit
The SEC requested the Northern District Court of California to dismiss three defenses by Kraken regarding allegations of unlawful conduct. The SEC challenged Kraken's claims about unclear securities laws and lack of fair notice regarding violations. The court is also asked to reject Kraken's "major questions doctrine" defense, which argues against regulatory power expansion without Congressional authorization. The SEC sued Kraken for operating as an unregistered securities exchange, broker, dealer, and clearing agency, alleging unlawful profits since 2018. The court previously rejected Kraken's motion to dismiss, affirming the settled definition of "investment contract." The SEC seeks to streamline the case by dismissing unsupported defenses.
