Kraken Asks Court to Dismiss SEC Claims to Avoid 'Significant Reordering' of U.S. Financial Structure

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Kraken Asks Court to Dismiss SEC Claims to Avoid 'Significant Reordering' of U.S. Financial Structure

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In April 9th, 2024 filling to court Kraken claims SEC fails to satisfy Howey test, a necessary condition for digital asset to be recognized as security

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05

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10

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2024

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12

:

00

am

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CoinDesk

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Kraken's latest reply to the SEC's motion to dismiss hinges on the extent to which one can interpret the SEC's jurisdiction by using the Howey test which determines what is and is not a security. It does so by determining whether four criteria are met - an investment of capital, in a common enterprise, with the expectation of profit, driven by the efforts of others. "The SEC cannot satisfy Howey’s additional requirements that there be investments of money in a common enterprise with a reasonable expectation of profits based on the efforts of others," Kraken's lawyers wrote.

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Kraken submits to U.S. court a reply to SEC April's letter against Kraken's motion to dismiss SEC case for Kraken operating as unregistered securities exchange, broker letter to dismiss SEC charges for acting as unregistered stock exchange, broker, clearing agent

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Kraken submits to U.S. court a reply to SEC April's letter against Kraken's motion to dismiss SEC case for Kraken operating as unregistered securities exchange, broker letter to dismiss SEC charges for acting as unregistered stock exchange, broker, clearing agent

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https://www.coindesk.com/policy/2024/05/10/kraken-asks-court-to-dismiss-sec-claims-to-avoid-significant-reordering-of-us-financial-structure/

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In April 9th, 2024 filling to court Kraken claims SEC fails to satisfy Howey test, a necessary condition for digital asset to be recognized as security

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Kraken's latest reply to the SEC's motion to dismiss hinges on the extent to which one can interpret the SEC's jurisdiction by using the Howey test which determines what is and is not a security. It does so by determining whether four criteria are met - an investment of capital, in a common enterprise, with the expectation of profit, driven by the efforts of others. "The SEC cannot satisfy Howey’s additional requirements that there be investments of money in a common enterprise with a reasonable expectation of profits based on the efforts of others," Kraken's lawyers wrote.

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