Kraken challenges SEC’s definition in legal battle

Kraken counters the Securities and Exchange Commission’s version of identifying legal investment deeds pertaining to transactions on the Kraken platform. This is regarding an appeal for nullifying a case introduced by the SEC. 

Kraken’s appeal focuses on a crucial differentiation between the initial offerings carried out externally and the secondary transactions that take place internally. The appeal stresses that digital assets, not investment deeds, are traded, brokered, and settled on Kraken.

To counter the investment deed affair, Kraken hits hard at the SEC’s approach of examining it in the form of different sorts of transactions to be in tune with its regulatory plans. The appeal speaks of the requirement for a deed with after-sale responsibilities for segmenting a transaction in the form of an investment deed, a factor not addressed on the Kraken platform. 

Over and above that, Kraken believes that the SEC is going beyond its rights by trying to regulate spaces related to the cryptocurrency arena sans the proper congressional ruling. The SEC counters with its opinion that the matter needs to be addressed by Congress and not the courts. 

Kraken ends its appeal by requesting the court consider that no investment deeds are involved in the company’s activities, therefore nullifying the entire case proceedings. As per an earlier statement by the Supreme Court, this seems to signify the SEC’s high-handedness on all legal matters.