As the company’s chief legal officer (CLO), Marco Santori, told CNBC, the legal battle with the SEC could take several months.
“The Securities and Exchange Commission states that Kraken is a clearing house and broker-dealer. Nothing like this exists in reality… This is completely made up by the SEC, and we do not agree with it,” the lawyer said.
A representative of the crypto exchange complains that other countries, unlike the United States, are creating a regulatory framework that helps companies that operate in the field of digital assets. Kraken, the lawyer insists, is not avoiding regulations, but rather demanding that authorities provide a legal framework “that makes sense for the crypto ecosystem.”
According to Santori, Ripple’s recent victory in court with the SEC in July has set a real precedent. The judge found that the ecosystem’s native token, XRP, could not be considered a security. Now this can play into the hands of crypto platforms that are embroiled in proceedings with the regulator, says Kraken lawyer.
The SEC previously filed a lawsuit in federal district court in San Francisco against Kraken, alleging that since September 2018, the crypto exchange has illegally facilitated the buying and selling of crypto assets, earning hundreds of millions of dollars. The SEC accused Kraken of operating as a marketplace that combined the functions of an exchange, broker, dealer and clearing agency without registering as required by law. That left investors with no recourse if they potentially lost money, officials said.
Recently, exchange co-founder Jesse Powell called the regulator a “US brake” and called on all crypto companies to leave American jurisdiction.
Source: Bits
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