SEC Files Lawsuit Against Kraken

BTC price reached $63,000 again, and the Fed’s readiness for rate cuts is now being priced in. However, markets are accustomed to sudden reversals after such rapid rises. The first bad news came just a moment ago, but it hasn’t had a serious impact on the price yet.

Kraken and SEC

SEC filed a lawsuit against Kraken, as it has done with other cryptocurrency exchanges. However, the exchange contested this. Now, the judge’s decision indicates that the parties should present their arguments in court.

SEC accuses the Kraken exchange of operating an unregistered securities exchange. U.S. District Judge William H. Orrick stated in the San Francisco federal court:

“SEC reasonably argued that at least some of the cryptocurrency transactions facilitated on Kraken’s network constitute investment contracts and therefore securities, subject to securities laws.”

The SEC, claiming that most altcoins are securities and investment contracts, has gained ground for the continuation of the case. The court believes the lawsuit is justified, assuming there are assets on the Kraken exchange that the SEC can prove to be securities.