Kraken, which is going through a number of allegations introduced by the Securities and Alternate Fee (SEC), is now searching for a jury trial within the lawsuit in opposition to it, in accordance with a court docket submitting on Thursday. The alternate additionally argued that the present authorized frameworks don’t cowl cryptocurrencies, thus they can’t be termed securities.

A Authorized Pushback from Kraken

First reported by Coindesk, the authorized representatives of the US-headquartered crypto alternate reiterated their denial of any unlawful conduct, responding to every allegation and presenting 18 different defences.

The SEC moved in opposition to Kraken final November, alleging that it was illegally working an unregistered securities alternate, dealer, seller, and clearing company. Moreover, the alternate has been accused of commingling prospects’ cash and crypto belongings with its personal.Nonetheless, Kraken denied the allegations a number of occasions and even requested the court docket to dismiss the lawsuit earlier.

Curiously, Binance and Coinbase are additionally going through related lawsuits introduced by the SEC. Nonetheless, Coinbase has not been accused of blending prospects’ funds with its personal.

Questioning the Legality

Now, Kraken’s defence relies on interpretations of the Securities Act and the Alternate Act, as neither contains digital belongings. Kraken’s attorneys argue that the alternate didn’t register as a result of it was not required to take action below current legal guidelines.

“Kraken didn’t violate Sections 5, 15(a) and 17A of the Securities Alternate Act of 1934 as a result of ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL […] should not securities or funding contracts,” the alternate famous within the movement filed in court docket. “The digital belongings themselves can’t be funding contracts as a result of they carry not one of the rights and obligations of a share of inventory, a bond, or some other monetary asset that Congress has stated is topic to SEC regulation.”

Kraken additionally accused the regulator of overstepping its authority, additional including that it took motion in opposition to the crypto alternate with out due course of and honest discover.

“As a result of lack of readability and honest discover relating to Kraken’s obligations below the legislation […] Kraken lacked honest discover that its conduct was prohibited,” the submitting added.

This text was written by Arnab Shome at www.financemagnates.com.