Kraken seeks jury trial to challenge SEC’s securities charges

Cryptocurrency exchange Kraken has requested a jury trial to dispute the SEC’s allegations that it operates as an unregistered securities exchange.

Cryptocurrency exchange Kraken has requested a jury trial in response to a lawsuit filed by the U.S. Securities and Exchange Commission in a court document filed on Thursday, September 12.

Kraken’s court filing disputes the SEC’s claims, arguing that the regulator overstepped its authority. The exchange also claims that the regulator’s approach was procedurally incorrect and that it failed to specify which transactions on its platform constituted investment contracts.

“The SEC has no authority to regulate Kraken’s digital asset trading platform […] “Because digital assets are not securities or investment contracts, and the sale of digital assets on Kraken does not constitute an investment contract within the meaning of the stock exchange law.”

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Despite Kraken’s efforts to engage with the SEC, the agency’s stance remains firm, as evidenced by similar lawsuits it has filed against Binance and Coinbase. The SEC’s actions have been criticized by Kraken for lack of clarity and fairness, with the exchange requesting “a jury trial for all such triable matters.”

The move follows a California judge’s decision in late August that allowed the SEC’s lawsuit against Kraken to proceed. The SEC’s lawsuit, which was filed in November 2023, accuses Kraken of operating as an unregistered securities exchange, broker, dealer, and clearinghouse and names more than 10 tokens, including Cardano (ADA), Algorand (ALGO), Polygon (POL), and Solana (SOL), as unregistered securities.