Originally published on: September 16, 2024
In a recent showdown with the United States Securities and Exchange Commission (SEC), Kraken, a popular cryptocurrency exchange, is standing its ground against claims of violating securities laws. The SEC alleged that Kraken had run afoul of federal regulations, but the exchange fired back, arguing that the assets in question do not meet the legal definition of securities.
Kraken’s legal filing dated Sept. 12 refutes the SEC’s allegations, stating that the assets flagged by the regulator do not fall under the category of securities or investment contracts. Specifically, assets like Solana’s SOL, Cardano’s ADA, Algorand’s ALGO, and others were mentioned in the SEC’s claim.
In a twist across the globe, the Brazilian Supreme Court has lifted a freeze on Elon Musk’s Starlink and X social media platform bank accounts. The funds, totaling $3.3 million US dollars, were seized due to a legal dispute involving the platform’s alleged failure to comply with court orders regarding misinformation and hate speech.
Shifting focus to the United Kingdom, the government has introduced new legislation to determine whether Bitcoin and other cryptocurrencies can be classified as “personal property.” This Property Bill aims to clarify the legal status of non-fungible tokens (NFTs), cryptocurrencies, and carbon credits, providing crucial legal protection for holders and companies amidst disputes.
In a bid to support NFT projects facing legal challenges, the Coinbase-led advocacy group Stand With Crypto has launched a $6 million Creator Legal Defense Fund. This fund, supported by venture capital firm a16z and NFT marketplace OpenSea, aims to offer legal assistance to artists and creators navigating uncertainties surrounding blockchain technology and SEC actions.
As regulatory battles ensue in the crypto world, Kraken, along with other major exchanges, finds itself in the crosshairs of the SEC, raising questions about the future of digital assets and securities laws.
