Kraken and SEC File Joint Stipulation in Ongoing Discovery Dispute
In the latest development, cryptocurrency exchange Kraken and the U.S. SEC have filed joint regulations and proposed orders. The move comes as Kraken plans to challenge a recently issued order in favor of the SEC.
According to the court Archive On December 23, plaintiff U.S. SEC and defendants Payward Inc and Payward Ventures (collectively known as cryptocurrency exchange Kraken) submitted a regulation.
All parties submit joint statement
On November 19, 2024, the parties filed a joint statement in connection with the SEC’s discovery dispute in opposition to Kraken’s request for three categories of documents: Bitcoin and Ethereum, SEC public statements and testimony regarding digital assets, and the SEC’s insider trading policy regarding digital assets,
In November, however, the court referred the discovery dispute and all further evidence in the case to Magistrate Judge Robert M. Illman, who subsequently denied Kraken’s bid to compel discovery. ask. Nonetheless, Kraken believes the documents are relevant to the case.
SEC and Kraken agree to meet deadline
While the deadline to challenge the order is December 30, Kraken intends to resubmit a reduced-scope production request in accordance with the order. Notably, the US SEC and Kraken agreed to postpone the deadline to challenge the order to March 31, 2025 to discuss further extensions.
Kraken is represented by prominent attorney Matthew C. Solomon, known for a number of high-profile cases, including successfully defending Ripple CEO Brad Garlinghouse against dismissal with prejudice, and Successfully defended all other summary judgment claims.
Kraken requested an order forcing the SEC to provide documents explaining why Bitcoin and Ethereum were not included in the SEC’s complaint, despite being traded similarly to other tokens on the platform. However, the magistrate found Clarken’s arguments “unpersuasive”.
Notably, Kraken and the broader crypto industry claimed that former SEC official William Hinman’s speech was relevant to determining the status of Bitcoin and Ethereum under federal securities laws. Kraken also asserts the fair notice defense and the principal issue doctrine in the lawsuit.
Ripple CLO calls for an end to Ripple and SEC litigation
Recently, Ripple CLO Stuart Alderoty also called for an end to Ripple’s lawsuit with the SEC. he urge The incoming Trump administration will “remove Hinman’s lingering stain from the agency.” “There’s still a lot of work to be done to repair the damage, but let’s start by restoring trust,” he noted.
