Tag: Kraken

Kraken Asks Court to Dismiss SEC Claims to Avoid ‘Significant Reordering’ of U.S. Financial Structure

Kraken’s latest reply to the SEC’s motion to dismiss hinges on the extent to which one can interpret the SEC’s jurisdiction by using the Howey test which determines what is and is not a security. It does so by determining whether four criteria are met – an investment of capital, in a common enterprise, with the expectation of profit, driven…

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SEC Overstepped Bounds in Kraken Lawsuit, State AGs Charge

A group of state attorneys general are arguing that the U.S. Securities and Exchange Commission exceeded its authority in suing the crypto exchange Kraken. State law enforcement officials from Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota and Texas filed a joint amicus brief – or friend of the court filing – in the SEC’s suit against Kraken on Thursday,…

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SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency

The Securities and Exchange Commission today charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset…

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Kraken Settles SEC Charge That Its SAAS Model Was an Illegal Securities Offering | Foley & Lardner LLP

In addition to recent settlements involving crypto asset lenders, the Kraken settlement is an example of the SEC pursuing enforcement actions against “centralized crypto companies” and claiming that existing securities laws apply to crypto-related financial products. Following the Kraken settlement, SEC Chair Gary Gensler gave an interview on CNBC in which he asserted that the settlement “should put everyone on…

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After Kraken Crackdown, Are the Remaining Crypto Giants Staring Down the Barrel of the US Government’s Gun?

“The SEC has never said what a compliant crypto exchange would look like under a securities regulatory regime,” said TuongVy Le, who handles regulatory strategy at Bain Capital Crypto. “There’s just a lack of clarity there.” Patrick Daugherty, a lawyer who once worked at the SEC but now represents crypto companies and exchanges, put it in more stark terms: “There…

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SEC’s Gensler Warns Crypto Firms to Take Note of Kraken Case Over Staking – Bloomberg

The fallout from Kraken’s settlement with the SEC has quickly rippled across the industry with shares from Coinbase Global Inc., which also offers staking, tumbling on the news. Kraken agreed to pay $30 million to settle the allegations and to discontinue staking in the US. “Other platforms should take note of this and seek to come into compliance, do the…

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Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges

The Securities and Exchange Commission today charged Payward Ventures, Inc. and Payward Trading Ltd., both commonly known as Kraken, with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent. To settle the SEC’s charges,…

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Crypto Exchange Kraken Faces SEC Probe Over Unregistered Securities – Bloomberg

Kraken, one of the world’s largest cryptocurrency exchanges, is embroiled in a probe by a top US financial regulator over whether it broke securities rules related to certain offerings to American clients, according to a person with knowledge of the matter. The Securities and Exchange Commission probe into whether Kraken offered unregistered securities is at an advanced stage and could…

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