SEC Lists 16 Crypto Tokens as Securities in Kraken Lawsuit
The US Securities and Exchange Commission (SEC) has listed 16 crypto tokens as securities in its lawsuit against crypto exchange Kraken. Most of the listed crypto securities are the same as those mentioned against Coinbase and Binance in the SEC lawsuits. Kraken CEO said: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.”
16 Crypto Tokens Labeled as Securities
The US Securities and Exchange Commission (SEC) has labeled 16 crypto tokens as securities in its lawsuit against crypto exchange Kraken on Monday. The complaint stated:
"Kraken currently makes available for trading crypto assets that have been the subject of prior SEC enforcement actions based upon their status as crypto asset securities, including crypto assets trading under the symbols ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL."
Most of the crypto assets mentioned above by the regulator had been listed in the earlier lawsuits, including those with Coinbase, Binance, and Bittrex. SEC Chairman Gary Gensler has repeatedly said that he views all crypto tokens, except bitcoin, as securities. However, a recent court ruling found that XRP is “not necessarily a security on its face.”
The SEC stated that crypto assets like ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC meet the criteria of being investment contracts in its lawsuit against Coinbase in June. The securities regulator also identified 12 crypto tokens: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities in a lawsuit against Binance in the same month. Earlier in April, the SEC labeled DASH, ALGO, TKN, NGC, and OMG as unregistered securities in a lawsuit against Bittrex.
Kraken CEO Disagrees with the SEC Claims
Kraken CEO Dave Ripley responded to the SEC’s charges on social media platform X on Monday:
“We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.”
Similar to Kraken, Coinbase insisted that its platforms do not list crypto securities. Paul Grewal, the chief legal officer of Coinbase, asserted in July that the SEC’s interpretation of “investment contract” violates the law.
US Senator Cynthia Lummis (R-WY) called on Congress after the SEC's move on Kraken to “pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity.”
She posted on X: “The SEC cannot continue ruling by enforcement. Crypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers.”
What is your take on the SEC stating that 16 crypto assets are securities in the Kraken lawsuit? Please share your thoughts and opinions in the comments section below.
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