A federal judge has ruled that Kraken must face a lawsuit filed by the SEC, which alleges that Kraken operated as an unregistered securities exchange. The lawsuit, initiated in November 2022, claims that certain cryptocurrency transactions facilitated by Kraken, including those involving tokens like ADA, SOL, and MATIC, qualify as investment contracts and are therefore subject to securities laws. Despite Kraken's efforts to dismiss the case, the court found the SEC's allegations plausible, allowing the lawsuit to proceed. Kraken's chief legal officer, Marco Santori, viewed the ruling as a partial win, noting that the court distinguished between a token itself and agreements surrounding it, similar to the distinction made in the Ripple case. Kraken has 20 days to respond.
Source: Decrypt