Kraken Challenges SEC's Stance on Digital Assets as Securities
Friday, 13 September 2024, 01:24
Kraken's Response to SEC Claims
Kraken has firmly refuted the SEC's allegations, arguing that digital assets such as ADA and ALGO do not meet the criteria established by the Howey test. This assertion raises critical questions about the classification of digital currencies in the regulatory landscape.
Understanding the Howey Test
- The Howey Test determines whether certain transactions qualify as investment contracts.
- Kraken asserts that their platform does not facilitate any unregistered securities.
- Implications for ADA and ALGO suggest that these assets retain their status as non-securities.
Market Impact and Regulatory Context
The ongoing conflict between crypto exchanges and regulators poses significant challenges for the industry. Kraken's defense is crucial in protecting digital assets' identities against overreaching regulations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.