Kraken SEC Lawsuit Continues To Have New Developments From Support For The Exchange

Key Points:

• Blockchain Association and DeFi Education Fund back Kraken against SEC, citing regulatory overreach.
• US state law enforcement officials and industry lobbyists also oppose the Kraken SEC lawsuit.
• Kraken denies SEC accusations and seeks dismissal, sparking regulatory debate.

The Blockchain Association and DeFi Education Fund have jointly submitted an amicus brief in support of Kraken’s motion to dismiss the lawsuit filed by the US Securities and Exchange Commission (SEC).

Blockchain Association and DeFi Education React to Kraken SEC Lawsuit

Read more: Kraken Review: The Best And Most Secure Exchange For Pro Traders

The brief contends that the SEC‘s attempts to regulate digital assets exceed its congressional mandate, leading to confusion within the industry. Marisa Coppel, Head of Legal at the Blockchain Association, and Amanda Tuminelli, Chief Legal Officer at DeFi Education Fund, emphasized the importance of rejecting the SEC’s overreach.

According to CoinDesk, law enforcement officials from several US states, including Montana, Arkansas, and Texas, along with industry lobbyists, have also filed a joint amicus brief opposing the Kraken SEC lawsuit. They argue that the SEC’s broadening definition of “investment contracts” could harm consumers and assert that cryptocurrencies do not automatically qualify as securities.

Kraken Challenges SEC Allegations, Ignites Regulatory Debate

This development follows the Chamber of Digital Commerce‘s (CDC) earlier submission of an amicus curiae to defend Kraken against the SEC’s allegations. The Kraken SEC lawsuit, initiated in November 2023, accuses the exchange of operating as an unregistered securities exchange, broker, dealer, and clearing agency.

Kraken has denied these allegations and opted to challenge the lawsuit in court. The SEC’s legal action against Kraken stems from its testimony before Congressional committees, sparking a debate on the boundaries of regulatory authority in the cryptocurrency space.