Judge Denies Kraken’s Bid to Dismiss SEC Lawsuit
A federal judge in California has denied Kraken’s request to appeal a prior ruling allowing the U.S. Securities and Exchange Commission (SEC) lawsuit against the crypto exchange to move forward. The decision, issued on Nov. 18 by Judge William Orrick, emphasized that granting the appeal would “only delay resolution” of the case.
The lawsuit, filed by the SEC in November 2023, accuses Kraken of operating as a registered exchange, broker, dealer, and clearing agency. The SEC argues that the crypto assets traded on Kraken’s platform qualify as securities under the Howey Test and are therefore subject to securities laws.
Kraken has denied these allegations and previously sought to have the case dismissed, a motion Orrick rejected in August.
Kraken’s September appeal bid claimed there were “substantial grounds for difference of opinion” on whether the Howey Test applies to cases lacking formal contracts or ongoing obligations.
The exchange hoped an appellate court could address these questions and potentially end the case early. However, Orrick rejected this reasoning, stating that no precedent supports Kraken’s interpretation of investment contracts.
“Several courts have addressed these issues and disagreed with Kraken’s position,” Orrick wrote, adding that further discovery is needed to determine whether Kraken’s activities meet all elements of the Howey Test.
The SEC also requested the dismissal of several of Kraken’s defenses earlier this month, arguing they could lead to unnecessary and burdensome discovery efforts. The case remains ongoing, with discovery expected to play a critical role in its resolution.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Experts Anticipate a Surge for SUI Cryptocurrency Based on Positive Indicators
In Brief SUI cryptocurrency shows optimism through positive technical indicators. Experts believe SUI is poised for a potential upward movement. Institutional predictions suggest significant price levels could be reached for SUI.

Massive OM Token Burn Sparks Investor Debate and Market Tension
In Brief Mullin announced a significant burn of 300 million OM tokens to reduce supply. Investor confidence is shaken as whale movements raise concerns about potential sell-offs. Market sentiment remains crucial as analysts call for additional measures for recovery.

Who is Patrice Evra, French football legend, set to speak at Token 2049 Dubai?
Elon Musk Takes Dig at Crypto Scammers Posing as “Hot Girls”
Trending news
MoreCrypto prices
More








