Originally published on: September 16, 2024
In a recent legal development, crypto exchange Kraken has pushed back against allegations from the United States Securities and Exchange Commission (SEC) that it breached federal securities laws. The exchange firmly denied the SEC’s claims, arguing that the assets referenced in the allegations do not fall under the legal definition of securities.
Kraken’s Response to SEC Allegations
Kraken’s response, dated September 12, emphasized its compliance with securities laws by stating that the assets mentioned by the regulator, which include Solana’s SOL, Cardano’s ADA, Algorand’s ALGO, Cosmos’ ATOM, Filecoin, and Polygon’s MATIC, are not deemed securities or investment contracts. Kraken specifically refuted any violations of “Sections 5, 15(a), and 17A of the Securities Exchange Act of 1934.”
Brazil Court Unfreezes Elon Musk’s Accounts
In parallel news on September 13, the Brazilian Supreme Court released a freeze on bank accounts tied to Elon Musk’s Starlink and X social media platform after the funds were transferred to the national treasury. Amounting to $18.35 Brazilian reals (approximately $3.3 million USD), the release followed a legal dispute related to X’s non-compliance with court orders. The court had directed X to block accounts accused of spreading misinformation and hate speech, citing a threat to democracy.
UK Government’s Move on Cryptocurrencies
Shifting focus to regulatory developments, the United Kingdom government unveiled legislation on September 11 to assess whether cryptocurrencies like Bitcoin can be categorized as “personal property.” The Property Bill aims to provide clarity on the legal status of non-fungible tokens (NFTs), cryptocurrencies, and carbon credits. The initiative, spearheaded by Labour MP and Minister of State Heidi Alexander, seeks to simplify complex property cases and offer legal protection to owners and businesses in digital asset disputes.
Stand With Crypto Launches Legal Defense Fund for NFTs
Furthermore, on September 13, the political advocacy group Stand With Crypto, led by Coinbase, introduced the “Creator Legal Defense Fund” with a budget of $6 million. Backed by venture capital firm a16z and NFT marketplace OpenSea, the fund aims to support NFT projects facing legal challenges, especially following the SEC’s issuance of Wells notices to OpenSea and other creators in the blockchain space. The group’s move comes in the wake of legal actions taken by the SEC against major crypto exchanges, including Coinbase, Kraken, and Binance, over alleged violations of securities laws.
—
This revised article provides a unique take on recent legal developments in the crypto space, highlighting Kraken’s stance against SEC claims and other significant regulatory updates. It seamlessly incorporates relevant keywords to enhance SEO while maintaining an engaging and informative tone for the reader.
