Kraken Petitions Court to Dismiss SEC Lawsuit; Provides Specifics

Cryptocurrency exchange Creak has recently filed a motion to dismiss the ongoing lawsuit brought against the company by the US Securities and Exchange Commission (SEC). The exchange argues that the SEC’s use of inappropriate terms in its claims is grounds for nullifying the lawsuit. In response to the SEC’s letter regarding the motion to dismiss, Kraken highlighted that the regulator referred to the “concept” and “ecosystem” of investment instead of using the terms “investment contract” and “company.” The SEC had previously argued that the words used in the law are not limited to obvious definitions. In November last year, the SEC charged Kraken with operating as an unregistered broker, dealer, exchange, and clearing agency. Kraken CEO Dave Ripley believes that the SEC’s action is in retaliation for the exchange’s criticism of regulatory excess. Ripley testified before the House Financial Services Committee and the House Agriculture Committee, expressing concerns about the SEC’s approach to cryptocurrency regulation. He emphasized that crypto innovators should be able to advocate for better legislation and more efficient markets without fear of retaliation.