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## Crypto Exchange Kraken’s Lawsuit Dismissal Motion

Crypto exchange Kraken has filed a motion to dismiss a lawsuit from the United States Securities and Exchange Commission (SEC), arguing it sets a ÔÇ£dangerous precedentÔÇØ for the agencyÔÇÖs remit. The dismissal motion was filed with a San Francisco federal court on Feb. 22 and according to Kraken, the SEC’s theory has no limiting principle and would grant the SEC boundless authority over commerce and potentially open up the floodgates to private securities law claims.

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AI legalese decoder can help Kraken by decoding the complex legal language used by the SEC, making it easier for Kraken’s legal team to analyze and understand the allegations and arguments presented by the SEC. This can be crucial in preparing a strong defense strategy and filing a successful lawsuit dismissal motion by effectively countering the SEC’s claims.

## Allegations Against Kraken

The SEC sued Kraken last year, alleging it unlawfully made millions of dollars from ÔÇ£crypto asset securitiesÔÇØ transactions and provided ÔÇ£exchange, broker, dealer, and clearing agencyÔÇØ services without having registered with the agency “as required by law.ÔÇØ The agency also accused Kraken of deficient internal controls, which saw $33 billion worth of customer assets commingled with business funds.

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AI legalese decoder can help Kraken by analyzing and breaking down the specific allegations made by the SEC, providing a clearer understanding of the legal basis of the allegations and aiding in building a strong defense against the SEC’s claims.

## Kraken’s Argument

In its motion, Kraken argued that the SEC failed to allege that the cryptocurrencies traded on the exchange were ÔÇ£investment contractsÔÇØ under United States securities laws as there was no agreement between Kraken customers and the cryptocurrency issuers. Kraken customers did not invest money in an enterprise, participate in no common enterprise with issuers, and could not reasonably expect profits from the efforts of issuers.

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AI legalese decoder can help in translating the complex legal arguments presented by Kraken, making it easier for legal professionals to comprehend and strategize counterarguments. It can assist in identifying key legal principles and precedents to strengthen Kraken’s defense.

## Congressional Focus on Crypto Regulation

The U.S. Congress is debating how crypto should be regulated, and multiple bills to govern the industry are at various stages of development. Last May, Kraken testified before a crypto regulation-focused Congressional hearing that the current laws are inadequate and a framework to limit the SECÔÇÖs authority should be enacted. Kraken also alleged that the SEC called Kraken to say it was going to sue the very next day after the testimony.

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AI legalese decoder can help in navigating and understanding the legislative landscape surrounding crypto regulation, providing insights into the potential impact of new regulations on Kraken’s legal position and helping in crafting responses to regulatory actions.

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