Kraken and SEC File Joint Stipulation Regarding Legal Dispute

Key Points:

• Kraken and SEC filed a joint stipulation and proposed order over a discovery dispute.
• A magistrate judge denied Kraken’s request to compel the SEC to produce these documents, but Kraken plans to resubmit narrowed requests.

Kraken and SEC have filed a joint stipulation and proposed order regarding one of the discovery disputes associated with the ongoing case against the two.

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Kraken and SEC File a Joint Stipulation in Ongoing Case

The crypto exchange is taking the recent order in favour of the SEC to court while attempting to get its hands on documents related to Bitcoin, Ether, and internal policies of the commission dealing with digital assets.

Kraken, via its parent companies Payward Inc. and Payward Ventures, filed the stipulation on Dec. 23, 2024, in response to objections to three leading document requests from the SEC. Bitcoin and Ether information, the SEC’s public statements and testimony about digital assets, and the agency’s internal trading policies are some of the documents included in the Kraken and SEC joint stipulation that Kraken deems important to the case.

The dispute arose after a magistrate judge, Robert M. Illman, denied Kraken’s request to compel the SEC to produce these documents. Undeterred by the outcome, Kraken will refile narrowed document requests in accordance with the judge’s order.

According to Federal Rule of Civil Procedure 72(a), objections shall be filed no later than December 30, 2024. Both parties have agreed to extend this deadline until March 31, 2025, to continue discussions.

Kraken Questions SEC’s Exclusion of Bitcoin and Ether in Legal Complaint

The SEC position has come under heavy scrutiny from Kraken and the broader crypto industry for failing to address why Bitcoin and Ether are not included in their complaint when those two digital assets are traded no differently than other tokens on the Kraken platform.

Kraken also expressed concern about how the speech of former official SEC William Hinman affected the regulatory approach toward the digital asset.

Kraken is represented by Matthew C. Solomon, a popular attorney who has litigated hundreds of high-profile matters, which recently included the defence of Ripple CEO Brad Garlinghouse.