The legal battle between the crypto exchange Kraken and the U.S. Securities and Exchange Commission (SEC) has taken a new turn, with Kraken officially requesting a jury trial.
Back in November, the SEC charged Kraken with operating its crypto trading platform without proper registration as an exchange, broker, dealer, and clearing agency.
Earlier this year, Kraken filed a motion to dismiss the charges in US District Court, arguing that the SEC’s claims would expand the definition of investment contracts and overstep its jurisdiction. However, the request was denied by US District Judge William H. Orrick last month.
In response, Kraken has now requested a jury trial and submitted a document to the court, refuting the SEC’s allegations. The exchange argues that it operated for over a decade without any indication from the SEC that it was violating securities laws.
Furthermore, Kraken claims that it tried to cooperate with the SEC to become registered but faced obstacles at every turn. The SEC, according to Kraken, failed to provide clear guidance on which crypto asset transactions were deemed as investment contracts until filing its complaint last year.
The SEC, on the other hand, contends that Kraken traded multiple “crypto asset securities” on its platform, including Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and Solana (SOL), and was obligated by law to register with the regulator.
Stay updated with the latest news by subscribing to email alerts and following us on social media platforms.
Image Credit: Midjourney
