SEC files motion seeking judgment in Kraken case, rejecting key defense

The U.S. SEC has filed a motion seeking a judgment in its case against Kraken, focusing on defenses such as "fair notice" and the "major issues doctrine." The timing of its filing of the motion has attracted industry attention, as some in the industry believe it is a strategic attempt to shield the SEC's approach from closer scrutiny. The SEC's motion seeks to dismiss defenses raised by Kraken, including the fair notice defense and the major issues doctrine. The fair notice defense argues that Kraken has not received adequate regulatory guidance on its crypto-related activities; meanwhile, the major issues doctrine states that regulators, such as the SEC, should not make major policy decisions without clear direction from Congress. The SEC's motion appears to be aimed at preventing further investigation of its policies, which Kraken and other cryptocurrency advocates have criticized as inconsistent and unclear. A similar motion was filed in the Ripple case, but the SEC failed to obtain a judgment. Michael O'Connor, an attorney representing Kraken, expects a similar outcome in the Kraken case, and it has other defenses if the motion proceeds. (CoinGape)