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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.