A federal judge has indicated a likely denial of Kraken's motion to dismiss the SEC's lawsuit, which alleges that the exchange operated as an "ecosystem" for crypto asset securities. During a June 20 hearing, Judge William Orrick noted that it was “plausible” digital assets were offered and sold as investment contracts. Kraken’s defense, referencing similar cases and arguing for equal application of securities laws, faced pushback from the SEC’s claims under the Howey test. A year-long discovery period is anticipated if the case proceeds.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
