US SEC Recordsdata Lawsuit In opposition to Kraken, Change Says Disastrous

In yet another anti-crypto enforcement action, the US Securities and Exchange Commission (SEC) charged Kraken with operating its crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. In response, the crypto exchange disagreed with the complaint, stating plans to ‘vigorously defend’ its position in court.

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Operating As ‘Unregistered’ Securities Exchange

The US agency complained that over the last five years and possibly prior to that, Kraken unlawfully made hundreds of millions of dollars in its crypto trading business. While the agency’s view of crypto buying and selling as an act of crypto asset ‘securities’ has long been contested, the SEC continues to enforce law based on the same ambiguity. In its complaint dated November 20, 2023, the Commission said,

“The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law.”

By operating as an unregistered entity, Kraken had allegedly deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, the SEC said in its complaint.

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Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1,200 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or or

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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