Kraken legal chief dismisses SEC charges as ‘hollow,’ citing Ripple victory

Kraken, facing charges from the U.S. Securities Exchange Commission (SEC), plans to combat and respond to the ailment successful court, confirmed the company’s Chief Legal Officer (CLO), Marco Santori, successful a speech with CNBC connected Nov. 30.

Santori said:

“The SEC alleges that … Kraken is simply a speech clearing location and broker trader for concern contracts. None of those things beryllium … there’s nary specified happening … it’s wholly and hollow made up by the agency, and truthful we disagree.”

Santori added that Kraken plans to combat and respond to the ailment successful court. Later successful the interview, helium suggested that it could instrumentality a fewer months to bash so.

Santori besides asserted that the SEC’s actions are atrocious policy, noting that different countries are creating authorities regulatory frameworks that are “fit for purpose” for integer plus companies. He acknowledged that, though the U.S. has not done so, members of Congress are moving toward that goal.

He emphasized that Kraken does not mean to debar regularisation but alternatively is asking for a ineligible model “that makes consciousness for the crypto ecosystem.”

CLO highlights Ripple victory

When asked astir Kraken’s adjacent plans for the ineligible case, Santori implied that Ripple‘s tribunal triumph against the SEC successful July acceptable the precedent that on-exchange transactions were not considered securities transactions. He commented:

“[The U.S. crypto industry] conscionable got [its] precise archetypal ruling connected these issues successful in the Ripple lawsuit … I deliberation it it was it was good reasoned, I deliberation astir of it was levelheaded, and we deliberation different courts are going to spot it the aforesaid way.”

Kraken cited the Ripple lawsuit successful passing successful an earlier blog post but has not explained however it mightiness code much circumstantial complaints alongside the broader securities charges. Notably, the SEC alleges that Kraken commingled funds, thing that Kraken says is discounted wrong the ailment itself.

The SEC initially filed charges against Kraken connected Nov. 20. The institution responded to those charges connected the aforesaid day. Kraken co-founder and committee president Jesse Powell has besides commented indirectly connected the matter.

The station Kraken ineligible main dismisses SEC charges arsenic ‘hollow,’ citing Ripple victory appeared archetypal connected CryptoSlate.