Kraken is challenging the accuracy of the SEC’s cases in an ongoing dispute

Kraken and the US Securities and Exchange Commission (SEC) remain embroiled in a dispute, as the crypto exchange filed a new document that casts doubt on the accuracy of the regulator’s case.

The development comes three months after Kraken filed a motion to dismiss the SEC’s lawsuit against it.

The SEC’s case is not drafted correctly

Kraken recently filed a response to the SEC’s April letter regarding the company’s motion to dismiss the case. In it, the exchange alleged that the securities regulator did not identify any investment contracts being traded, traded or settled on its platform.

The filing claims the SEC used terms like “investment concept” and “ecosystem” instead of “investment contract” and “company” in its argument.

The SEC had previously stated that “the words themselves do not delineate the type of security because ‘the scope of the act does not stop with the obvious and common,'” citing case law.

The SEC accused Kraken of operating as an unregistered stock exchange, broker, dealer and clearing agency.

According to the regulator, Kraken illegally facilitated the trading of crypto-asset securities since at least September 2018, generating hundreds of millions of dollars. The charges were similar to those brought against Binance and Coinbase.

Kraken: SEC Overstepping Regulatory Authority

In the wake of the allegations, the firm and its representatives denied the SEC’s claims, opting to contest the suit in court.

In February, Kraken argued that the Commission was overstepping its regulatory authority in its motion to dismiss the suit. He also countered that cryptocurrencies, especially those mentioned in the SEC’s complaint, should be treated as commodities rather than securities.

Later that month, the Digital Chamber of Commerce (CDC) filed an amicus curiae brief in support of Kraken’s motion, which stated:

“The SEC does not allege fraud. The SEC does not allege harm to consumers. The SEC’s only claims are that Kraken has operated in some form in plain sight for nearly a decade as an unregistered stock exchange, broker and clearing agency, in violation of the Exchange Act.

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