Crypto exchange Kraken has requested a jury trial to contest the SEC’s allegations that it operated as an unregistered securities exchange.

Crypto exchange Kraken has requested a jury trial in response to a lawsuit filed by the U.S. Securities and Exchange Commission, a court filing revealed on Thursday, Sept. 12.

Kraken’s court filing argues against the SEC‘s claims, asserting that the regulatory body has overstepped its authority. The exchange also claims the regulator’s approach lacks due process and fails to specify which transactions on its platform constitute investment contracts.

“The SEC has no authority to regulate Kraken’s digital asset trading platform […] because the digital assets are not securities or investment contracts, and sales of the digital assets on Kraken do not form the basis of investment contracts, within the meaning of the exchange act.”

Kraken

Despite Kraken’s efforts to engage with the SEC, the agency’s stance remains firm, as evidenced by its similar lawsuits against Binance and Coinbase. The SEC’s actions have been criticized by Kraken for lacking clarity and fairness, with the exchange demanding a “jury trial for all issues so triable.”

The move follows a California judge’s decision in late August, allowing the SEC’s case against Kraken to proceed. The SEC’s lawsuit, initiated in November 2023, accuses Kraken of operating as an unregistered securities exchange, broker, dealer, and clearing agency, citing over 10 tokens, including Cardano (ADA), Algorand (ALGO), Polygon (POL), and Solana (SOL), among others, as unregistered securities.

The crypto market concluded another week with eye-catching developments unfolding across the broader industry. While Sony launched its Ethereum L2 marking a monumental stride, Telegram CEO caught the courtroom spotlight. Further, OpenSea also caught the eyes of legal eagles of the U.S. SEC.

Here’s a brief collection of some of the top crypto market headlines for this week, which have echoed a frenzy across the broader industry.

Crypto Market Updates: Sony Launches Testnet For Ethereum L2, Telegram CEO Under Legal Supervision

Sony Group’s blockchain subsidiary launched the testnet phase for its Ethereum layer 2 solution, Soneium, this week. The testnet, Minato, was streamlined via a partnership between Sony and Web3 company Startale.

Meanwhile, Telegram CEO Pavel Durov encountered legal scrutiny in France. The CEO was detained on charges related to the use of Telegram in illicit activities. Further, after extended detention, Durov was finally released on August 29. However, it’s worth mentioning that the TG CEO currently remains under judicial supervision.

The arrest also saw strong opposition from leading prominencies, such as Elon Musk and RFK Jr, among many others. Simultaneously, the TON blockchain witnessed outage for nearly six hours this week, sparking concerns among investors.

OpenSea Gets Wells Notice

Meanwhile, NFT marketplace OpenSea received a wells notice from the U.S. SEC this week. CoinGape Media reported that the SEC’s crackdown comes as the regulatory authority believes that digital collectibles traded on the platform are securities.

In light of this event, Ripple CLO Stuart Alderoty suggested that the SEC might lose another lawsuit, citing historical data. The lawsuit itself has sparked significant discussions across the global crypto community.

Also, it’s worth noting that the lawsuit emerged in tandem with Donald Trump’s launch of his series 4 NFT collection. This event has garnered additional attention on the matter.

Other News From The Broader Crypto Market

In the interim, some other key events unfolded across the crypto sector this week, substantially impacting market sentiments. Kraken launched futures trading for Shiba Inu (SHIB), Pepe Coin (PEPE), and dogwifhat (WIF).

On the other hand, the broader market brimmed with optimism over Bitcoin and Altcoins’ future price movements as the U.S. PCE Inflation data came in lower than expected. Notably, the U.S. PCE Inflation came in at 2.5% for July, unchanged from the previous month.

Also, it’s worth mentioning that an XRP documentary is set to release on Amazon and Apple TV in November. Moreover, Ethereum co-founder Vitalik Buterin denied claims of selling any ETH proceeds despite his holdings being on a decline.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.