Kraken, a cryptocurrency exchange, assures that its regular operations are continuing without any disruption, despite a recent lawsuit from the U.S. securities watchdog. The exchange contends that the lawsuit is inaccurate and could have severe consequences.
The SEC has filed a lawsuit against Kraken’s parent companies, Payward and Payward Ventures, alleging that they are operating an unregistered online trading platform.
Kraken is now in league with Coinbase and Binance, facing legal action from the SEC. The SEC argues that these platforms are functioning as unregulated securities exchanges.
Additionally, the U.S. Department of Justice is in discussions with Binance to settle an ongoing investigation, with a potential settlement amount exceeding $4 billion.
The cryptocurrency exchange contested the SEC’s assertion that its products were considered investment contracts, stating that such a claim is legally inaccurate, factually untrue, and potentially harmful in terms of policy.
Faryar Shirzad, Chief Policy Officer of Coinbase, shared thoughts on the lawsuit, emphasizing the importance of adhering to the rule of law. According to Shirzad, applying the actual laws has long been a respected tradition and legal obligation in the United States since its establishment. This practice is crucial for the government to operate with the consent of the governed.