Kraken Confident in Legal Victory Against SEC Over Token Listings

Kraken remains optimistic about its chances in the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).

Recently, U.S. District Judge William H. Orrick denied Kraken’s motion to dismiss the SEC’s lawsuit, which accuses the exchange of violating securities regulations by listing coins like Cardano (ADA), Algorand (ALGO), and Solana (SOL) as securities.

Despite this setback, Kraken’s chief legal officer, Marco Santori, is confident that the case will ultimately be resolved in their favor. He argues that the court’s ruling indicates that the SEC cannot simply categorize all listed tokens as securities without meeting specific criteria.

Santori highlights that the SEC will now have to prove, on a case-by-case basis, that each transaction on Kraken meets the Howey test— a standard used to determine whether an investment is a security.

He asserts that the SEC will face difficulties meeting this standard and is eager to demonstrate this during the discovery phase of the trial.

Additionally, Santori calls for U.S. lawmakers to enact clear regulatory guidelines for the crypto industry. He believes that comprehensive legislation is crucial for protecting consumers and promoting innovation in blockchain technology.