The Federal Court of California Rules Crypto Assets Traded on Kraken are Not Securities
The Federal Court of California, presided over by district judge William H. Orrick, has ruled that the crypto assets traded on the Kraken platform are not securities. Judge Orrick noted that the existing criteria used by the U.S. Securities and Exchange Commission (SEC) to determine whether crypto assets are securities are «at best unclear and at worst convoluted.»
Kraken Legal Officer Marco Santori Praises Court’s Decision
Marco Santori, Chief Legal Officer of Kraken, expressed satisfaction with the court’s decision. He believes that this ruling sets an important precedent for the crypto industry and could be key in defining the status of cryptocurrencies. According to Santori, it is now clear that crypto assets on the Kraken platform do not fall under the definition of securities, which should ease the legal uncertainty on this matter.
Legal Clarity for Cryptocurrencies
Santori highlighted the recent Ripple case where the court ruled that XRP issued by Ripple is not a security when traded on the secondary market. He mentioned that this decision has created clearer conditions for the cryptocurrency market and challenges the SEC’s aggressive enforcement strategy.
Santori believes that the court’s decision in the Kraken case and the Ripple case help to establish a more clear regulatory framework for cryptocurrencies and show that the status of tokens as securities depends on specific agreements and contracts related to them. This sets a positive precedent for the crypto industry, promoting greater legal clarity and stability.
