Key Takeaway:
- SEC lawsuit against Kraken denied by California judge
- SEC alleges securities violations related to blockchain transactions on Kraken
- Crypto assets like ADA, MATIC, and SOL may be considered securities
- SEC under Gensler criticized for anti-crypto stance
- Regulation challenges for crypto businesses and players
SEC Lawsuit Denial for Kraken
California judge denied Kraken’s request to dismiss SEC lawsuit, stating the crypto exchange must face allegations of securities violations. The SEC’s complaint filed in November 2023 asserts that certain blockchain transactions on Kraken qualify as investment contracts under the Howey Test.
Hostile Approach of SEC under Gensler
Under chair Gary Gensler, the SEC is accused of adopting an unfriendly stance towards digital assets. Blockchain service providers claim the regulator lacks clear policies and registration guidelines, leading to challenges in compliance for the industry.
Enforcement Actions Against Crypto Giants
Gensler and the SEC emphasize the need for greater compliance in the digital asset ecosystem, resulting in lawsuits against major entities like Binance, Coinbase, Kraken, and Ripple. Despite setbacks in cases like Ripple’s XRP sales, SEC’s actions continue, raising concerns among the Web3 community about potential regulatory overreach.
