Kraken Secures Legal Victory: Court Rules Tokens Are Not Securities

In a justrecently stated case, the Federal Court for the Northern District of California has stated that no token traded on Kraken can be thoughtabout a security. This judgment is a win for Kraken, and on the morecomprehensive crypto market because the business stands its ground on the truth that it does not list securities.

Marco Santori, the Chief Legal Officer of Kraken, shared his viewpoint on the court judgment in a series of X posts. He argued that the judgment is in the finest interest of Kraken and is relativity clear to the users of cryptocurrencies all over the world. Santori pointed that the court fulfilled SEC’s development of the “crypto property security” principle as being uncertain at finest, and complicated at worst.

The court frowned at the technique of the SEC constantly to falsify Kraken’s positions by utilizing a cliché of a “written agreement” to argue that a token cannot be a security without it. Despite these results, the court given to continue to the discovery phase in the case. The factor for this choice can be discovered in the court’s technique carriedout earlier, as in the Ripple case, where the court draws a difference inbetween. On the one hand, a token itself is not a security, on the other, arrangements linked with it can be thoughtabout a security.

SEC’s Case Falters, Kraken Stands Firm

While the concept that “tokens are securities