The Kraken SEC lawsuit, involving the U.S. Securities and Exchange Commission (SEC) and the prominent crypto exchange Kraken, is escalating as the Chamber of Digital Commerce (CDC) enters the fray. By submitting an “amicus curiae brief” in court to support Kraken, the CDC underscores the significance of the case, which has the potential to reshape government regulations on digital currency.
The CDC, which began its journey in 2014 and holds the title of being the largest organization globally dedicated to digital money and blockchain technology, is taking a stand against what it perceives as the SEC’s endeavor to oversee digital money without explicit guidelines established by Congress.
The CDC, a significant player in the realm of digital finance and blockchain innovation since its establishment in 2014, is pushing back against the SEC’s actions, asserting that the regulatory body is trying to manage digital currencies without having proper directives from Congress.
Kraken SEC Lawsuit: CDC Disputes SEC’s Digital Currency Regulations
They argue that the SEC is mistaken in attempting to categorize all digital currency transactions as investments requiring specific regulations. Their concern is that this approach could hinder the rapid adoption and advancement of emerging technologies like blockchain. Additionally, they highlight previous instances where the SEC has not prevailed in similar cases, citing Ripple and Terraform Labs as notable examples.
The disagreement between Exchange and the SEC began in November 2023. According to the SEC, Kraken violated regulations by acting as a stock exchange, broker, dealer, and money handler without obtaining the necessary approvals. However, Kraken disputes these accusations, stating that they are false. They have requested the court to dismiss the case.
Kraken argues that the SEC is coming after them because of something their top lawyer said to Congress in May. They think the SEC is getting back at them for speaking out. Kraken’s not the only one fighting the SEC like this; other big companies like Binance and Coinbase are doing the same thing. They’re all trying to push back against what they see as unfair treatment from the government.