SEC Identifies 16 Crypto Tokens as Securities in Kraken Lawsuit

SEC Identifies 16 Crypto Tokens as Securities in Kraken Lawsuit – The U.S. Securities and Exchange Commission (SEC) has designated 16 cryptocurrency tokens as securities in its legal action against Kraken, aligning with similar allegations made against Coinbase and Binance. Kraken’s CEO has asserted a strong disagreement with the SEC’s claims, maintaining that they do not list securities and are committed to robustly defending their position.

The regulator’s complaint states: “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.”

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The regulatory body noted that certain crypto assets mentioned earlier were also implicated in past legal proceedings involving Coinbase, Binance, and Bittrex. SEC Chairman Gary Gensler has consistently expressed the opinion that, excluding bitcoin, he considers all crypto tokens to be securities. Nevertheless, a recent court decision determined that XRP is not inherently categorized as a security.

In its June lawsuit against Coinbase, the SEC asserted that cryptocurrencies such as ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC fulfill the criteria for being considered investment contracts. Likewise, in a lawsuit against Binance in the same month, the regulatory body identified 12 crypto tokens, including BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, as securities. 

In April, the SEC, in a legal action against Bittrex, claimed that DASH, ALGO, TKN, NGC, and OMG are unregistered securities. Responding to the SEC’s charges on Monday, Kraken CEO Dave Ripley emphasized on social media platform X: “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.” Like Kraken, Coinbase has insisted that its platforms do not list crypto securities. 

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In July, Coinbase’s chief legal officer, Paul Grewal, asserted that the SEC’s interpretation of “investment contract” violates the law. After the SEC’s move against Kraken, U.S. Senator Cynthia Lummis (R-WY) called on Congress to “pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity.” She stressed 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.”

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