On November 7th, COINOTAG News reported that the U.S. Securities and Exchange Commission (SEC) has submitted a motion in the Northern District of California, aiming to quash Kraken’s pivotal defense in an ongoing legal case. The SEC contends that Kraken was adequately forewarned regarding allegations of breaching securities regulations by classifying their cryptocurrency offerings as an “investment contract”. The choice to file this motion on Election Day has faced backlash from Kraken’s legal representatives, who criticize it as a tactic to evade intense scrutiny of what they describe as the SEC’s inconsistent and flawed policies. This case underscores growing tensions between regulatory authorities and cryptocurrency exchanges as the sector evolves.
