Kraken Must Face SEC Suit Over Crypto Exchange Registration
- Ruling comes amid agency crackdown led by Chair Gary Gensler
- Judge finds plausible argument securities laws apply to Kraken
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Cryptocurrency platform Kraken must face a US Securities and Exchange Commission lawsuit accusing it of operating an unregistered securities exchange, a judge ruled.
“The SEC has plausibly alleged that at least some of the cryptocurrency transactions that Kraken facilitates on its network constitute investment contracts, and therefore securities, and are accordingly subject to securities laws,” US District Judge William H. Orrick wrote in an opinion published Friday in San Francisco federal court.