Kraken, the cryptocurrency exchange, is once again entangled in a legal battle with the U.S. Securities and Exchange Commission (SEC). The latest lawsuit from the SEC categorizes Cardano (ADAUSD) and Solana (SOLUSD), among other cryptocurrencies, as securities.
Kraken’s resolute response to SEC allegations
Kraken’s CEO, Dave Ripley, has taken a firm stance in response to the SEC’s lawsuit accusing the exchange of conducting unregistered securities operations. Ripley vehemently disputes the SEC’s claims, emphasizing that Kraken does not list securities.
The CEO pointed out the lack of a clear registration path with the SEC and highlighted factual inaccuracies in the allegations, addressing a broader issue of policy-making in the United States. Ripley called for Congressional action to address regulatory ambiguities and pledged Kraken’s ongoing support for initiatives aimed at bringing clarity to the U.S. crypto landscape.
Despite the legal challenges, Kraken assures its dedication to its mission and its clients, both in the U.S. and globally, with no anticipated impact on the current services provided.
ADA, SOL, and other cryptocurrencies under SEC scrutiny
The SEC’s lawsuit against Kraken aligns with a broader trend of classifying various cryptocurrencies as securities, following similar actions against other major exchanges. Earlier this year, the SEC filed lawsuits against Binance and Coinbase, asserting that tokens like ADA, SOL, and Polygon (MATICUSD) are unregistered securities.
Charles Hoskinson, the founder of Cardano, clarified that there has been no specific enforcement action targeting ADA, dispelling rumors of increased SEC scrutiny. Both Input Output Global (IOG), the developer firm behind the Cardano blockchain, and the Solana Foundation have rejected the SEC’s claims regarding ADA and SOL being securities.