The SEC has intensified its legal action against Kraken, arguing that the exchange should not be allowed to pursue its defenses related to the major questions doctrine. On November 5, the SEC filed a motion to dismiss three of Kraken's defenses regarding the regulator's allegations that it has been operating without proper registration since 2018. The motion contends that Kraken’s claims about the vagueness of US securities laws and not receiving fair notice of alleged violations are unfounded. The SEC highlights that allowing these defenses could lead to unnecessary and burdensome discovery requests that would distract from the core issues. Previously, a federal court had denied Kraken’s motion to dismiss the SEC's lawsuit in August. As part of the ongoing legal tussle, the SEC is asserting its authority to regulate cryptocurrency exchanges, amidst a broader context of regulatory scrutiny facing the cryptocurrency industry.

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