California judge denies Kraken's motion for preliminary appeal

A California judge has denied Kraken’s motion for a preliminary appeal, saying in his ruling on Monday that allowing an appeal would only “delay resolution” of the SEC’s ongoing litigation case against Kraken. Kraken filed its preliminary motion for a preliminary appeal (a type of appeal that challenges a judge’s non-final decision while allowing other aspects of the case to move forward) in September. A month earlier, U.S. District Court Judge William Orrick of the Northern District of California ruled that the SEC had grounds to allege that cryptocurrencies sold on Kraken’s platform may be securities under the Howey test. In the September motion, Kraken’s lawyers argued that Orrick should allow them to appeal to a higher court, arguing that Orrick’s order “involves a controlling question of law about which there is a substantial disagreement” and that “an immediate appeal…may substantially facilitate the termination of the litigation.” But Orrick was unmoved, reminding Kraken’s lawyers in his ruling on Monday that allowing a preliminary motion for a preliminary appeal was “entirely discretionary” and dismissing their assumption that an appeal would expedite the case. Last November, the SEC sued Kraken, alleging that it operated as an unregistered securities exchange, broker, dealer, and clearing house, and sought disgorgement and civil penalties, as well as a permanent injunction. Kraken denied any wrongdoing and moved to dismiss the case, but the motion was dismissed in August. (CoinDesk)