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Representatives from the cryptocurrency exchange Kraken have submitted a motion to dismiss the lawsuit initiated by the U.S. Securities and Exchange Commission (SEC). They argue that the case exceeds the agency’s jurisdiction and establishes a perilous precedent.
Kraken’s attorneys filed a motion in the U.S. District Court for the Northern District of California to dismiss the case brought against the firm by the SEC last November.
Following the submission of the official document, the company’s blog released a cover letter. In this letter, representatives accused the SEC of engaging in politically motivated litigation against the crypto exchange. They claimed that the SEC’s lawsuit originated from a speech given by Marco Santori, Kraken’s Chief Legal Officer, to the U.S. House of Representatives in May 2023. In this address, Santori criticized the SEC’s regulatory stance on the crypto market. Kraken asserts that legal threats from the agency followed the very next day.
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Kraken’s legal team contends that the lawsuit against the company could create a dangerous precedent by granting the SEC unlimited authority over the crypto market. They argue that the regulator’s claims are based on the assumption of an investment contract lacking post-sale obligations or interaction between the issuer and the purchaser. If the court continues with the case against Kraken, the SEC might be able to file similar lawsuits against any firms involved in trading digital assets. Kraken’s attorneys suggest that the SEC could equally target sellers of collectible sports cards, luxury watches, or diamonds for breaching securities laws.
In the motion to dismiss, Kraken’s legal representatives also request the court to reevaluate the definition of assets that fall under the category of securities and the SEC’s regulatory framework. They emphasize that the current definition used by the regulator implies that the sale of any assets for speculative purposes amounts to securitization, a concept not supported by the Securities Act.
Previously, attorneys for Binance and Coinbase submitted similar motions, claiming that the SEC is exceeding its regulatory authority over the crypto market.
Сообщение SEC Vs. Kraken Lawsuit Sets Dangerous Precedent and Should Be Dismissed появились сначала на CoinsPaid Media.
