Kraken, which had ended its staking services in accordance with the agreement it made with the SEC at the beginning of last year, but could not prevent a lawsuit from being filed by the SEC again in November, came out harshly against the institution this time.

The stock exchange stated in a statement that the lawsuit filed by the SEC against them was unfair, and they formally asked the court to dismiss the case.

“It is the decision of Congress”

The exchange spokesperson, who also sent a written statement to Fox Business from the US media, used the following statements:

“Today, we filed a motion asking the Court to dismiss the SEC’s lawsuit against Kraken. The SEC’s Complaint did not claim any fraud or consumer harm whatsoever. It made only a registration-based argument that Kraken operates as an unlicensed securities exchange, broker, dealer and clearing agency because crypto tokens are so-called “investment contracts.” The SEC should not be permitted to expand its own jurisdiction; that is Congress’ decision”

On November, the SEC alleged in November that the exchange’s parent companies were operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.

The SEC lost the Grayscale lawsuit this year and the cryptocurrency industry won a historic victory. The institution also suffered a significant loss in the Ripple lawsuit. The court ruled that purchases made to small investors through exchanges cannot be considered as investment contract sales.