Kraken files to dismiss SEC suit — ‘dangerous precedent’ for overreach

The SEC’s suit against Kraken has “has no limiting principle” and gives the agency too wide of an authority, the crypto exchange argues.

In an accompanying blog post, the crypto exchange stated:

“The SEC’s theory is that there can be an investment contract with no contract, no post-sale obligations and no interaction at all between the issuer and the purchaser.”

It added the agency’s theory means it “has no limiting principle” and would grant the SEC “boundless authority over commerce and potentially open up the floodgates to private securities law claims.”

“It would turn a broad range of ordinary assets or commodities, like sports memorabilia, trading cards, expensive watches, or even diamonds, into securities.”