SEC Gains Ground Against Kraken, Paving the Way for Future Cryptocurrency Regulations – BitRss

The U.S. Securities and Exchange Commission (SEC) secured a partial victory against Kraken in a federal court in California. The court dismissed Kraken’s assertion that Congress did not grant the SEC regulatory authority over cryptocurrency.

Details of the Case

Judge William H. Orrick rejected Kraken’s defense based on the “major questions doctrine.” This doctrine suggests that federal agencies cannot exercise powers not explicitly granted by Congress.

The court determined that the SEC did not exceed its regulatory authority in this case. Orrick emphasized that this doctrine is generally applied to issues with “significant economic consequences,” such as energy markets or student loans.

Kraken’s Defense

Kraken maintained its defense of “fair notice,” arguing that the SEC did not provide sufficient warnings about alleged violations of securities laws.