Kraken Challenges SEC in Court

[dkbit98]

COPA (Crypto Open Patent Allience) shows it's possible, where they stopped faketoshi from hunting cryptocurrency developer and critics. And looking at https://www.opencrypto.org/members/, Kraken (along with other company sued by SEC) is already part of COPA. So IMO it could be sooner than you think.

Faketoshi is a clown and liar, it's much different story when someone is going against big corrupt government agencies.
You can't even compare this cases, it would be like comparing speeding ticket with murder case in court.
It would be much stronger case if more exchanges would join Kraken.

[Captain Corporate]

While some things are easy to sue, this one feels like its not going to be simple at all. I think its going to be something that will take some time and we are going to see this becoming something that will take some time. I know that its not easy to handle any of this and I know that we are going to see this becoming something that will take years as well. Government dislikes anyone who sues government, and SEC is not doing anything that is all that complicated at all, they are just going to side with each other and that is why I am not really hoping for a good result for Kraken out of this.

[Themepen]

I like the Kraken arguments based on the existing laws that were established for stocks, bond, and other financial assets subject to SEC regulations.
I am skeptic whether the SEC have good knowledge about cryptocurrency, and each time I read about them clamping down on CEX/Dex exchanges.
Based on some coins/token they had categorized as security, and on this arguments that were actually established to guide stocks, bonds, and others, unfortunately, many of the SEC lawsuit has not gone their favour, and I keep wondering if SEC chairman and his team are just chasing crypto exchanges for their selfish benefits or they are politically motivated. I think they have not been fair on their pursuit to regulate the cryptocurrency economy.

It is natural to doubt SEC intentions in regulating cryptocurrency economy. You wonder if they genuinely understand cryptocurrency or are doing by personal interests or politics. SEC history of losing cases against crypto exchanges raises many questions. SEC Chairman statement that... no honest business needs to fear the SEC... contradicts their actions.


SEC main goal should be protecting investors not hindering innovation. Their method for deciding what counts as security Howey Test can be unclear and outdated for cryptocurrency. This leads to inconsistent rules fueling concerns about SEC motives.


For effective regulation SEC must balance between investor protection and innovation. Clear guidelines and collaboration with cryptocurrency community can build trust. SEC needs deeper understanding of cryptocurrency unique challenges. Transparency consistency and fairness are important for trust.