Kraken calls on the court to dismiss the lawsuit filed against it by the SEC

ChainCatcher news, Kraken has filed a motion with the court to dismiss the lawsuit brought against it by the SEC. The SEC's complaint does not allege any fraud or consumer harm, but instead claims that Kraken operates as an unlicensed securities exchange, broker, dealer, and clearing agency based solely on registration issues, as the crypto tokens are considered so-called "investment contracts." Even if all of the SEC's allegations are taken as true, its argument is still legally flawed.

Kraken emphasizes that the SEC has never pointed out any "contract" between buyers on Kraken and the token issuers, and therefore it cannot constitute an "investment contract." Under the law, the assets mentioned in the SEC complaint are not investment contracts. Kraken urges the court to dismiss the case and return legislative power to Congress, insisting on what it believes is right for its customers and the innovator community.