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 A California federal judge has denied crypto exchange Kraken’s request to appeal a ruling that allows the U.S. Securities and Exchange Commission (SEC) lawsuit against it to proceed.&nbsp;
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The decision, <a style="color: #0000ff;" href="https://www.courtlistener.com/docket/68023155/106/securities-and-exchange-commission-v-payward-inc/" rel="noopener noreferrer nofollow">issued</a> by Judge William Orrick on November 18, explains the court’s stance that the SEC has sufficiently alleged that Kraken engaged in the sale of unregistered securities.
Judge Orrick rejected Kraken’s motion for an interlocutory appeal, stating that it would only delay the case’s resolution. He highlighted that the SEC’s claims, centered on whether the crypto assets traded and sold on Kraken qualify as investment contracts under the Howey test, must be resolved through further litigation.
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 “Fundamentally, I do not believe that certification will materially advance the ultimate termination of the litigation,” 
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he wrote. 
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 “While the SEC has plausibly alleged its theory of securities violations against Kraken, only discovery will establish whether the sales, trades, and exchanges on Kraken truly met all the Howey elements.”.
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Kraken had previously <a style="color: #0000ff;" href="https://www.courtlistener.com/docket/68023155/91/securities-and-exchange-commission-v-payward-inc/" rel="noopener noreferrer nofollow">argued</a> that the case raised significant legal questions about securities laws, including whether an investment contract can exist without a formal agreement or post-sale obligations. The exchange hoped a higher court would address these questions and potentially dismiss the case.
However, Orrick dismissed these arguments, noting that Kraken had failed to cite any case since the Howey decision, in which a court ruled that formal contracts or post-sale obligations were required to establish an investment contract. He also pointed out that multiple courts have already rejected similar defences.
Kraken’s legal team has yet to issue a public statement regarding the latest decision.
Meanwhile, <a style="color: #0000ff;" href="https://defi-planet.com/2024/11/kraken-launches-broker-service-in-australia/" rel="noopener noreferrer nofollow">Kraken is expanding its services for Australian clients</a>, targeting eligible wholesale customers. On November 3, Kraken announced a new broker service under a registered financial services license, offering access to crypto-based derivatives. This service allows high-net-worth clients to execute advanced trading strategies and gain exposure to cryptocurrency price movements without directly holding the assets.
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The post <a href="https://defi-planet.com/2024/11/california-judge-denies-krakens-bid-to-appeal-sec-lawsuit-decision/" rel="noopener noreferrer nofollow">California Judge Denies Kraken’s Bid to Appeal SEC Lawsuit Decision</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

California Judge Denies Kraken’s Bid to Appeal SEC Lawsuit Decision

DeFi Planet

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