What the Partial SEC Win Means for Crypto Exchange
William Orrick (William Orrick) gave some victory in the securities and trading committees in the legal struggle headquarters in the US cryptocurrency exchange. Key defense. Development will affect the fate of other exchanges, and other exchanges also show similar defense in the legal struggle against regulators?
How does the SEC defeat Kraken?
In response to the main defense of the SEC is the main problem of principles, this argument said that unless Congress clearly stated that the court should not interpret the law as the power of the main problems.
Judge Orik believes that cryptocurrencies have not reached the economic significance of the energy market or student loans.
Craken’s fair notification defense is still active
At the same time, Kraken’s argument is that the SEC does not test how to provide clear guidance for how HOWEY is suitable for its transactions. It prevents SEC from winning obvious advantages in the legal struggle with the exchange.
SEC’s lawsuit against Kraken
It was in November 2023 that SEC failed to file a lawsuit against Kraken. The main allegations in the lawsuit are that the exchange has violated the securities law since 2018. Last year, the Federal Court rejected a motion to reject the SEC lawsuit against the exchange.
Kraken judgment is more extensive to encryption companies
Several other cryptocurrency companies including Coinbase, Ripple and Ripple and Binance have used main problem arguments to defend their legal actions from SEC.
Craken’s decision set a precedent for the court’s judgment of the SEC’s power of the cryptocurrency industry.
SEC’s encryption special force
In any case, the new SEC government is very keen to create a clear regulatory framework for the encryption industry. SEC has recently created an encrypted special force under the leadership of the SEC commissioner Hester Peirce, creating a clear framework for digital assets, and at the same time balance law enforcement and innovation.
In short, the victory of the SEC defeating Kraken marks the turning point of the encryption regulations. Although the defense of Kraken’s main problem has determined a precedent, accepting the acceptance of its announcement shows that more clear guidelines are required. As more and more encrypted companies face regulatory review, the balance between law enforcement and innovation is still critical to the future of the industry.
