Summary
Kraken filed a motion to dismiss the SEC’s case, arguing that the assets in question are not investment contracts. The SEC’s claims do not meet the criteria for an investment contract, according to Kraken. The case aligns with the Crypto Freedom Alliance of Texas, which also filed a lawsuit against the SEC. Kraken is calling for the authority sought by the SEC to be placed in the U.S. Congress.
Key Points
1. Kraken filed a motion in federal district court asking for the dismissal of the SEC’s case, arguing that none of the assets mentioned constitute ‘investment contracts’ and that Kraken is not a securities exchange.
2. The motion filed by Kraken in Northern California District Court challenges the SEC’s claims, stating that the SEC failed to allege the necessary elements of an ‘investment contract’ as per the Howey test.
3. Kraken’s argument aligns with the Crypto Freedom Alliance of Texas (CFAT), which filed a separate lawsuit against the SEC over its definition of regulated securities, criticizing the SEC’s broadened scope and potential impact on the U.S. economy.