Crypto Exchange Kraken Demands Jury Trial, Disputes SEC’s Crypto Claims

Kraken, dealing with several accusations from the Securities and Exchange Commission (SEC), is now asking for a jury trial in the case against it, based on a court document filed on Thursday. The crypto exchange also claimed that current laws do not apply to cryptocurrencies, so they cannot be called securities.

According to reports, the lawyers of the US-based crypto company repeated that they did not do anything illegal, replying to each claim and giving 18 other reasons in their defense.

Kraken Argues That Digital Assets Fall Outside The Securities And Exchange Acts

Last November, the SEC accused Kraken of running an unregistered securities exchange clearing agency, dealer, and broker. The exchange was also blamed for mixing customers’ funds and crypto with its own. Kraken has denied these accusations many times and even requested that the court should drop the case.

Interestingly, Coinbase and Binance are also dealing with similar cases from the SEC, but Coinbase has not been blamed for mixing customer money with its own.

Kraken’s defense focuses on the meaning of the Securities Act and the Exchange Act, which do not include digital assets. Kraken’s legal representatives said the crypto exchange didn’t register as it was not required under the current law.

The exchange noted that digital assets cannot be classified as investment contracts as they don’t have the rights and responsibilities of assets like bonds, stocks, or other financial assets covered by SEC rules.

Kraken Alleged The SEC Acted Outside Its Jurisdiction Without Proper Warning

The company also blamed the SEC for going beyond its powers, saying the agency acted without clear notice and proper steps.

Earlier this year, Kraken announced that it had received a license in the Netherlands, letting the exchange provide services in the nation.

The Netherlands has a strong startup and tech sector, a good financial industry, and the highest rate of fintech adoption among developed countries. About 20% of Dutch citizens own crypto, which is one of the highest rates in Europe, Kraken noted in its post.

Getting this license in the Netherlands is part of Kraken’s bigger plan to grow across Europe. The firm also has licenses in Ireland, Italy, and Spain.

Brian Gahan, Kraken’s Managing Director in Europe stated that with the Dutch VASP registration, the company’s plan to grow in Europe is speeding up. He added that there are now many opportunities for the firm to offer its services to professional traders and regular customers in the Netherlands and throughout Europe.