The SEC initially sued Kraken in November 2023, alleging it unlawfully made millions of dollars from “crypto asset securities” transactions and provided “exchange, broker, dealer, and clearing agency” services without having registered with the agency “as required by law.” This was months after settling charges over Kraken’s former staking service. However, Kraken filed a motion to dismiss, contending that it establishes a “dangerous precedent” for the agency’s jurisdiction. In response, the SEC filed a 39-page opposition to Kraken’s motion to dismiss, saying, “It is simply not the case that this enforcement action exceeds the authority Congress granted the SEC.” In the Thursday, May 9 motion, Kraken contests the SEC’s claim that written contracts are required in investment agreements, emphasizing that contracts can be oral, expressed or implied.