- The Kraken-SEC battle is intensifying.
- Kraken has made a new demand in an attempt to bolster its defense.
- The ongoing legal tussle may be taking a new form.
The U.S. Securities and Exchange Commission (SEC) and crypto exchange Kraken have been at odds for months, following the commission’s revival of its claims that the exchange’s offerings violated securities laws. Despite many efforts, the regulatory commission has refused to back down in its claims.
The exchange has stepped with a fresh demand in a new defense move.
“Jury Trial Demanded:” Kraken Takes on SEC
Kraken is seeking additional means to thwart its ongoing tussle with the SEC. In a September 12 filing to the United States District Court for the Northern District of California, Kraken formally requested a jury trial to address its ongoing conflict with the SEC.
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Kraken’s demand follows a federal judge’s denial of its motion to dismiss the SEC’s lawsuit last month, requiring the exchange to respond to the complaint within 20 days.
Maintaining its stance that the commission’s case is an attempt to expand authority beyond its legal bounds, the exchange again countered the SEC’s claims that it violated securities laws in its filing. It added that the commission has failed to set clear standards to aid compliance, condemning its lack of cooperation with the industry.
“Kraken has tried to work with the SEC to make registration feasible. But the industry’s efforts have been stonewalled at every step, as the SEC has instead chosen to pursue a strategy of fighting with its sister regulators for enforcement authority its Chair admitted it did not have,” the filing read.
The exchange further presented an 18-part defense against the commission’s allegations and inaccuracies, requesting that a jury rather than a judge try the ongoing case.
What a Jury Trial Means
By demanding a jury trial, Kraken requests that a group of individuals, rather than just one judge, hear and decide on its ongoing clash with the SEC.
Jury trials typically involve both sides’ arguments being presented to this group of individuals, jurors, who will be responsible for evaluating the evidence and determining the outcome based on their understanding and deliberations. They introduce an extra layer of transparency to legal processes, allowing for a fair and unbiased approach.
If granted, this could allow both the SEC and Kraken to present their individual cases to a diverse group of individuals who could potentially offer different perspectives and interpretations of the arguments.
On the Flipside
- Two other crypto exchanges, Binance and Coinbase, are also entangled in similar battles with the SEC.
- Ripple, another target of the SEC’s streak of enforcement actions, has recently criticized the commission.
- The SEC has come under scrutiny in recent months for its hostile approach to the industry.
Why This Matters
Kraken’s demand for a jury trial is a key move in its strategy to strengthen its defense against the SEC. A group of jurors may interpret evidence and arguments differently than a judge, potentially resulting in a different verdict.
Industry figures are backing Kraken in its battle with the SEC; find out more here:
Ripple Defends Kraken Against SEC Lawsuit as Court Case Proceeds
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