Kraken in turmoil: The SEC declares 16 of its cryptos as securities!

The SEC is categorical and does not want to budge. The institution that torments crypto exchanges has just submitted to American justice the list of 16 tokens offered by the Kraken crypto exchange. The regulator, determined, maintains that these tokens are securities and demands that justice be done. Disappointed, Kraken refuses to give in. The leaders of the exchange are igniting on social networks, finding significant support among American legislators. Details.

16 cryptos including ADA, SOL and MATIC considered securities by the SEC

Assured that all cryptos except bitcoin are securities, the SEC is not finished with the crypto exchange Kraken. As part of its new lawsuit against the exchange, the regulator has identified 16 tokens offered by the platform and which would be titles.

The tokens concerned are Cardano (ADA), Polygon (MATIC), Solana (SOL), Axie Infinity (AXS), Cosmos (ATOM), Chiliz (CHZ), Coti (COTI), Dash (DASH), Decentraland (MANA), The Sandbox (SAND), Filecoin (FIL), Flow (FLOW), Algorand (ALGO), Internet Computer (ICP), NEAR (NEAR), OMG (OMG).

To this end, the SEC considers that Kraken must face the rigor of the law for not having registered these securities. She had already cited some of these tokens in her lawsuit against the crypto exchange Coinbase, which nevertheless insisted that it does not list securities. As expected, Kraken officials responded to the SEC’s accusations.

Kraken reacts and finds support from an American legislator

On Monday, November 20, the CEO of the crypto exchange Kraken, Dave Ripley took to the X to express his “deep disagreement with the SEC’s assertions.” He said his team remains “firm on the view that Kraken does not list titles.” He also said the company plans to “vigorously defend its position.”

Unexpectedly, Kraken found significant support among the ranks of American legislators. This is US Senator Cynthia Lummis, a member of the Republican Party. She spoke out on X by directly addressing Congress.

In her post, the senator stated that “The SEC cannot continue to rule through enforcement” because it causes “unnecessary harm to consumers.” She called on the US Congress to “adopt a regulatory framework that clearly shows the SEC which assets are securities and which are commodities”. Faced with the recurrence of this type of situation, crypto exchanges will have to take action to demand clear and precise crypto regulations. This is the necessary condition for the prosperity of the crypto ecosystem.