The war between cryptocurrency exchange Kraken and the US Securities and Exchange Commission continues amid new statements from the platform.
like Bloomberg The exchange accuses the regulator of incorrectly wording its arguments in the accusations, he writes, citing a new letter from Kraken filed earlier this week.
Kraken claims that the SEC used the terms investment “concept” and “ecosystem” instead of “investment contract” and “enterprise” multiple times in its arguments. According to the platform, the regulator was unable to identify any investment contracts that could be sold, brokered or settled on Kraken.
The SEC previously noted, citing case law, that the words themselves do not define the type of security because actions are not limited to the obvious and trivial.
Last November, the Securities and Exchange Commission filed a lawsuit against Kraken, alleging that it was operating without a proper license. The lawsuit states that since 2018, Kraken has illegally operated as a securities exchange, broker, dealer, and clearing agency, earning hundreds of millions of dollars. In addition, Kraken could be commingling its clients' funds with its assets, which could result in losses on both sides.
The SEC filing requests that Kraken be permanently banned from operating as an unregistered exchange. In addition, the regulatory body announced the need to pay a fine and return part of the illegally obtained funds.
In June 2023, cryptocurrency exchanges Binance and Coinbase faced similar lawsuits from the Securities and Exchange Commission. As with Kraken, both exchanges have been accused of violating securities laws.
