Bitcoin Forum

It appears that after the SEC's legal loss against Ripple, uncle Gary is beginning to crackdown on another popular company in the cryptospace. I have not yet read the SEC's filing but I will update and give my thoughts when I do hehehe. I am quite certain there will be some statements in the document that will show uncle Gary's clownery.

https://i.ibb.co/gVvbMH6/A68-C5179-CFC4-4-B03-8-ACF-3-E101179-A90-C.png

The United States SEC is suing the Kraken Crypto exchange, charging the platform with operating as an unregistered securities exchange, broker, dealer, and clearing agency. The commission put out a release today revealing the suit and its charges.

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 securities.” Additionally, the commission says that Kraken combines the services of an exchange, broker, dealer, and clearing agency. However, the SEC alleges that Kraken does all of this, without having registered any of those functions with them, as required by law.

Read in full https://watcher.guru/news/sec-sues-kraken-crypto-exchange

Source https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-237.pdf

Sec at it again  ;D

But what are the odds that these exchanges share notes on how to hit back at SEC especially seeing that some crypto platforms have comeback with some wins..

Btw sharing some nice piece of writing I found on twitter X and it has  valid arguments
https://www.talkimg.com/images/2023/11/21/F4gI5.jpeg

So how does SEC go after these guys without a clear cut channel of registration

Do they have proof of these allegations or they shooting in the dark??

I thought United States SEC has been very tough with its regulations. SEC sued Ripple since 2021 but after then SEC has sued crypto organizations like Coinbase and one other exchanges or so, or maybe not led to suit if Coinbase and the other exchange complied to what SEC said?

Kraken co-founder Jesse Powell has criticized it and also advice crypto organizations to leave the United States. I think SEC label some cryptocurrencies as securities which caused this. But indeed, most cryptocurrencies are securities.

What the hell SEC is doing and alleging exchanges one by one for false lawsuit. First Ripple, then Binance, Coinbase and now Kraken exchange. SEC are doing their best to  produce trouble for crypto exchange. If this action continues, I think many exchange will he wind up like Bittrex and Hotbit. SEC has no strong argument against Kraken exchange. According to Kraken , SEC only argued that kraken is holding large customer amount which has no audit and not registere d with their agency. I like the kraken reply that SEC cannot allege exchange for fraud, hacking or revealing customers information. Source (https://www.theblock.co/post/263913/kraken-says-products-remain-unaffected-amid-secs-new-disastrous-lawsuit?utm_source=twitter&utm_medium=social)

What will be next step of SEC, will Carry ask for 4 billion here also and this 4 billion will solve all problem?

I don’t understand why regulators create problems for the kraken, kraken have US jurisdiction with transparent reportings

It would be better if they announced a hunt for Binance, they have significantly more violations

This is not accurate, the SEC's legal action was not only against Ripple and Kraken, but their activity has increased in recent months. Go to https://www.sec.gov/news/pressreleases?aId=&combine=crypto&year=All&month=All which will give you search results related to cryptocurrencies and during this year alone there have been over 15 reports.
Kraken will not be the last, and it seems that they will continue with this until the end of the year to see after that whether the same materials will be allocated to them next year or not, but due to the popularity of some platforms, they appeared first, but they are targeting the entire industry.

The US government probably wants their cut of the profit in these exchanges, look at what Binance has to pay to stop the criminal investigations and have CZ stepping down. The next step for SEC is probably the same thing that they'll do with other exchanges, making more easy money for themselves. I can see the reason of suing, I mean it's shady that there's no audits happening but then the counter argument of protecting customer data is a big deal too, I guess they need to reach a compromise regarding this issue because this can't always happen, the customers are the ones that's going to suffer big time.

The SEC is a government agency and not a profit-making institution, so I do not think they are looking for profits, but these fines and restrictions aim to make the platforms leave the American market or commit to fully cooperating with the SEC and providing all data, including customer data and taxes, and closing any account they want to close, otherwise there will be a fine and accusation of supporting money laundering.

Unfortunately  they are not only suing Kraken for those reasons. They are also taking them to court for more serious grounds, sadly. If SEC is true it's very disappointing from Kraken and Jesse Powell to be honest, because I thought it was a rather professional and serious exchange.

https://www.sec.gov/news/press-release/2023-237

IMO, we're going to see this often before the approval any Bitcoin ETF application. They're just going to aim any exchange that they can but of course with proper details and proof of what's the reason for suing them.

I agree, despite that we don't like the steps of what they've been doing for all of these news and suing. They're working for the government and they're trying to protect what's assigned for them to do. But we don't also know that these exchanges have been doing something that's against the regulations of the government because they're on a good situation. Well, we might see another huge settlement fine within the next months or before the halving.

The concept of the aim of having an SEC government is indeed good to guard against criminal acts or management of the economic cycle, if on the other hand it is only to seek profit this will make market founders want to leave the zone. This pressure must have a certain goal on the part of the target party

The SEC under uncle Gary has always been going after anyone in the cryptospace without clear regulations and guidelines. There are more than 2 judges that have already ruled against them and that appears to have made their jobs for them by giving clear guidelines on what a company in the cryptospace can legally do.

Another concerning move from the SEC is about using exchange API keys. According to the SEC, if you use this locally in your own computer then you are considered a broker and you should get a license!