Kraken News: Countering SEC's Labeling of Digital Assets as Securities
Kraken News: A Defiant Stance Against SEC Regulations
Centralized crypto exchange Kraken retaliated against the US Securities and Exchange Commission (SEC) by challenging its securities label on digital assets. The regulator claimed Kraken violated federal securities laws when it offered certain digital assets, which qualify as unregistered securities.
Kraken Defies SEC Allegations
Kraken stated that ADA, ALGO, SOL, and other assets do not meet the legal definition of securities under US law. The exchange criticized the SEC for a lack of clarity, asserting that the regulatory approach represents a form of overreach.
- Kraken cites the Howey ruling, a landmark Supreme Court case.
- Challenges the SEC’s claims about the digital assets.
- The exchange argues that tokens like ADA and SOL fail to meet the criteria of an investment contract as defined by the Howey framework.
Kraken's legal defense highlights essential debates about cryptocurrency regulations and investor protection in a rapidly changing market environment. The outcome of this case could have major implications for the classification of digital assets moving forward.
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.