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Kraken Challenges SEC’s Identification of Legal Investment Deeds
Kraken has recently filed an appeal to counter the Securities and Exchange Commission’s (SEC) characterization of legal investment deeds associated with transactions on the Kraken platform. The appeal aims to dismiss a case brought forward by the SEC, highlighting a critical distinction between initial offerings conducted externally and secondary transactions carried out internally on the platform.
The core argument put forth by Kraken in its appeal revolves around the trading, brokering, and settlement of digital assets rather than investment deeds on its platform. Kraken asserts that the SEC’s approach of categorizing transactions into various types to align with its regulatory framework is misguided, particularly in the absence of concrete evidence linking these transactions to investment deeds.
Furthermore, Kraken contends that the SEC is overstepping its jurisdiction by attempting to regulate aspects of the cryptocurrency space without explicit congressional authorization. In response, the SEC argues that such matters should be addressed by Congress rather than the judicial system.
In concluding its appeal, Kraken urges the court to recognize that no investment deeds form part of its operations, thereby seeking the dismissal of the case. This stance echoes a previous statement by the Supreme Court, underscoring the potential overreach of the SEC in legal matters.
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