Kraken Win: Court Rejects SEC’s ‘Tokens are Securities’ Claim

A U.S. federal court dealt a blow to the SEC’s regulatory approach, when it ruled that digital assets traded on Kraken were not securities. This ruling not only impacts the SEC’s ongoing crackdown on crypto firms but also raises fundamental questions on the agency’s authority to classify tokens as securities.

The SEC’s broad assertion that “tokens are securities” has been facing increasing scrutiny over the years. And with the court finding this concept as “unclear” and “confusing,” echoing sentiments from the Ripple case, this is a massive win for Kraken and for the broader digital asset ecosystem.

It should be noted that the SEC initiated a massive crackdown on crypto firms in 2022 after collapse of the Terra ecosystem, claiming that virtual asset service providers are providing their services in the United States without registering their o…

The post Kraken Win: Court Rejects SEC’s ‘Tokens are Securities’ Claim appeared first on Coin Edition.