Kraken Challenges SEC Lawsuit, Argues Cryptos Aren't Securities

Kraken files a motion to dismiss the SEC's lawsuit, claiming the agency's broad definition of securities oversteps its authority and lacks legal basis.

Kraken filed a motion in federal district court to dismiss the SEC's lawsuit, arguing that cryptocurrencies do not constitute 'investment contracts' and thus are not securities.
The motion criticizes the SEC's 'expansive new theory' that could classify a wide range of assets as securities, potentially overreaching into the U.S. economy.
Kraken contends the lawsuit is retaliation for political speech, highlighting the case as an example of overreach by a 'politically compromised agency'.
The crypto exchange emphasizes the need for coherent rules within the industry, opposing the SEC's current direction.
All cases, including Kraken's, hinge on whether cryptocurrencies are considered securities under U.S. law, a question awaiting resolution through the appeals process or potential new regulation.