Kraken vows to ‘vigorously defend’ SEC lawsuit amid Congressional support

1 year ago

Crypto speech Kraken would “vigorously defend” itself against the lawsuit brought by the U.S. Securities and Exchange Commission (SEC), according to a Nov. 20 statement.

Similarly, CEO David Ripley and co-founder Jesse Powell powerfully disputed the regulator’s claim, asserting that the speech does not database securities.

Kraken products unimpacted

Kraken said the SEC suit did not interaction its products and vowed to support servicing clients without interruption.

The speech said the regulator’s allegations were “incorrect arsenic a substance of law, mendacious arsenic a substance of fact, and disastrous arsenic a substance of policy.”

“The SEC has promulgated nary regularisation describing however an bid successful a integer plus should beryllium matched, nary guidance connected however a commercialized should beryllium cleared, and articulated nary standards for however to broker a integer plus transaction,” Kraken wrote. “The allegation is hollow; determination is nary specified happening arsenic an exchange, broker-dealer, oregon clearing bureau for concern contracts. The SEC is demanding compliance with a authorities that doesn’t exist.”

Executives slam SEC

Ripley emphasized the firm’s committedness to defending its stance and explicitly stated that they bash not database securities tokens.

Ripley further criticized the SEC for urging exchanges to “come successful and register” without providing wide regulatory guidelines. He added:

“[The SEC] allegations are factually incorrect, contrary to law, and the incorrect mode to make argumentation successful the United States.”

Echoing Ripley’s sentiments, Powell described the SEC arsenic an extortionist and its accusations arsenic an affront to America portion questioning the regulator’s motive.

According to him, financially constrained crypto firms should reconsider operating wrong the U.S. arsenic the SEC knows “that a existent combat volition apt outgo [over] $100 cardinal and invaluable time.”

Congress support

Meanwhile, members of the U.S. Congress, including Senator Cynthia Lummis and Warren Davidson, person shown enactment for the exchange.

Lummis criticized the SEC’s enforcement-driven attack and urged Congress to found a wide regulatory framework. She emphasized the request for explicit rules distinguishing securities from commodities. She said:

The SEC cannot proceed ruling by enforcement. Crypto plus companies person repeatedly tried to get guidance from the SEC lone to beryllium deed with enforcement actions, causing unnecessary harm to consumers.”

On the different hand, Davidson reposted a societal media station from pro-crypto lawyer John Deaton urging Kraken customers to person their voices heard.

The station Kraken vows to ‘vigorously defend’ SEC suit amid Congressional support appeared archetypal connected CryptoSlate.

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