US SEC seeks court approval to dismiss Kraken's key legal defenses

On November 7, the U.S. Securities and Exchange Commission (SEC) has filed a motion in the U.S. District Court for the Northern District of California seeking to dismiss key defenses raised by Kraken in the parties' ongoing legal dispute. According to the motion filed on Tuesday, the regulator asserts that Kraken had prior fair notice when it alleged that Kraken violated securities laws by offering cryptoassets as “investment contracts.” The timing of the SEC's Election Day filing of the motion has sparked criticism from Kraken's legal team, who see it as a tactic to circumvent an “investigation into the SEC's flawed and inconsistent policies.”