United States-based cryptocurrency exchange Kraken was unable to dismiss the Securities and Exchange Commission’s case against it.
US District Judge William H. Orrick stated that the SEC’s claim that some of Kraken’s crypto transactions qualify as investment contracts and are subject to securities laws has merit.
Judge Orrick further noted that Kraken generated over $43 million in revenue through its trading desk, with minimal restrictions on buying and selling assets, reinforcing the SEC’s argument.
The SEC filed a lawsuit against Kraken on November 20, 2023, for operating as an unregistered securities exchange, broker-dealer, and clearing agency, and also for mishandling customer assets and information.
The SEC specifically alleges that 10 different tokens, including ADA, ATOM, FIL, and SN7P, offered by Kraken are securities.
