The SEC “overstepped its bounds” in the case of cryptocurrency exchange Kraken, according to US state attorneys general.
A group of US state attorneys general has harshly criticized the US Securities and Exchange Commission’s (SEC) handling of the Kraken case.
SEC’s special attention to cryptocurrencies exceeds its limits in terms of defining it as a security Chief prosecutors argued that this situation harmed many actors, including investors.
SEC, operating unregistered And mixed customer funds filed a lawsuit against Kraken on the grounds that
Stating that the definition of security is overextended Montana, Arkansas, Iowa, mississippi, Nebraska, Ohio, South Dakota And Texas State attorneys general called on the SEC to be more constructive:
The SEC’s exercise of this undelegated authority puts consumers at risk by potentially precluding state statutes that are better tailored to the particular risks of non-securities products. Some state laws protect consumers more than federal securities laws. The regulatory body needs to be more constructive on such sensitive issues.
Kraken recently filed an application with the court to dismiss the case filed by the SEC. According to Kraken’s claims, the SEC said that the exchange “investment contracts” for unregistered Even though it claims to provide services, this “contracts” Couldn’t identify what it was.