SEC Sues Kraken for Operating Without Proper Registration
The United States Securities and Exchange Commission (SEC) has recently filed a lawsuit against Kraken, accusing the company of operating as an unregistered securities exchange, broker, dealer, and clearing agency. This highlights compliance issues in the crypto industry. According to Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, “We allege that Kraken made a business decision to reap hundreds of millions of dollars from investors rather than coming into compliance with the securities laws. That decision resulted in a business model rife with conflicts of interest that placed investors’ funds at risk.” (SEC)
XRP Excluded from Kraken Lawsuit
Despite not being involved in the legal battle against Kraken, Ripple’s native token – XRP – has seen a slight decline in price, dropping by 2% for the past 24 hours and 6% on a weekly basis, according to CoinGecko’s data. This is significant as XRP was not listed in the SEC’s lawsuit against Kraken, but its price was affected. (CoinGecko)
Ripple’s Ongoing Legal Battle with the SEC
Ripple is currently engaged in an ongoing legal battle with the SEC, with a significant trial set for next spring after some initial wins for Ripple. Judge Analisa Torres has set a schedule for remedies-related discovery and briefing, with both entities required to complete the necessary procedures before February 12, 2024. The outcome of the battle, which started almost three years ago, will be determined in the grand trial next spring. (New York Times)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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