- Kraken has filed a motion to dismiss the lawsuit filed against it by the US Securities and Exchange Commission (SEC).
Kraken, a leading cryptocurrency exchange, has initiated legal action by filing a petition to dismiss the lawsuit filed against it by the US Securities and Exchange Commission (SEC).
Kraken Moves To Drop SEC Case
This move by Kraken, Binance Holdings Ltd., Binance.US and Coinbase Global Inc.
It follows similar steps taken by other companies in the industry to dismiss the SEC’s lawsuits against them.
The SEC’s lawsuit against Kraken alleges that the exchange operates an unregistered trading platform and mixes customer assets with its own funds.
Additionally, the SEC alleged that Kraken used bank accounts containing customer funds to cover its expenses, raising concerns about the protection of customer assets.
See Also: Major US Banks Want The US SEC To Change Crypto Rules So They Can Handle Bitcoin ETFs
In its motion to dismiss the case, Kraken challenged the SEC’s jurisdiction over speculative investments, arguing that the commission lacks the authority to regulate all such activities.
Kraken underlined that the SEC complaint did not allege any cases of fraud or consumer harm resulting from its activities, as highlighted in a blog post published by the company.
Kraken aims to defend its position and challenge the regulatory framework imposed by US authorities by joining forces with other industry leaders to have the SEC cases dismissed.
The outcome of these legal battles will have significant implications for the broader cryptocurrency industry and impact regulatory approaches and market dynamics going forward.
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