Regulation
Oral Arguments Begin, Here’s What to Know

Kraken’s motion to dismiss the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) is scheduled for oral arguments today at 1 PM ET/10 AM PT.
The SEC accuses Kraken of being unregistered exchange and broker-dealer and asserts that 11 tokens, SOL, ADA, and ALGO, are securities.
Kraken Vs. SEC Oral Arguments Begin
The SEC has accused Kraken of running an unregistered securities exchange, Kraken also has been accused of operating as an unregistered broker-dealer and also of operating as an unregistered securities clearing agency. The SEC stated that 11 tokens listed on Kraken, including ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL, are securities. Kraken’s dismissal motion relies on the Howey Test, stating that the SEC has not alleged that any securities transactions occurred on its exchange.
NEW: Oral arguments for @krakenfx’s Motion to Dismisst against the @SECGov begins today at 1PM ET/10AM PT.
In addition to Kraken operating as an unregistered exchange and broker-dealer, the SEC is claiming 11 tokens including $SOL, $ADA and $ALGO are securities.
— Eleanor Terrett (@EleanorTerrett) June 20, 2024
Kraken had filed a reply to the SEC lawsuit, arguing that the agency’s case is weak and that the suit should be dismissed. In its latest response, Kraken strongly refutes the SEC’s allegations of trading unregistered securities.
The exchange, therefore, said that the SEC did not correctly identify the investment contracts that are tradeable on the exchange and took issue with some of the terms used by the SEC, such as ‘investment concept’ and ‘ecosystem’, saying that these should have been ‘investment contract’ and ‘enterprise’ respectively.
Similarly, Kraken has received support for its motion to dismiss from Senator Cynthia Lummis, the Blockchain Association, the DeFi Education Fund, the Chamber of Digital Commerce, the Investor Choice Advocates Network, Paradigm, and two administrative law scholars. These entities have filed briefs in support of Kraken’s position.
Comparison with Coinbase Case
The legal community is waiting to see whether the SEC will employ the same arguments in Kraken’s case as in the Coinbase motion to dismiss the hearing. In that case, the SEC claimed that tokens’ ecosystems make them fall under the Howey Test to be classified as securities. The SEC will examine this argument to determine if this is still applicable in the current situation.
Moreover, Kraken relies on the SEC cases on initial coin offerings (ICOs) to back its argument. The crypto exchange notes that these cases concerned contractual rights and obligations, which is consistent with Kraken’s view of investment contracts.
Coinbase’s Chief Legal Officer, Paul Grewal, has earlier on accused the SEC of making contradictory arguments. In a similar case against Coinbase, the SEC again claimed that most of the supported tokens are investment contracts, using the Howey Test. As per Coinbase, the SEC’s mixed signals and unequal enforcement actions have led to legal ambiguity in the digital asset market.
BTC and ETH Commodity Status
The SEC has allocated commodity status to Bitcoin (BTC) and Ethereum (ETH) through the approval of spot ETFs, although SEC Chair Gary Gensler has not publicly addressed ETH’s status.
Bitcoin and Ethereum have arguably the two largest “ecosystems” behind them, raising questions about why other tokens with significant ecosystems are classified differently.
The crypto community and legal experts will closely follow today’s arguments to understand how the SEC’s stance on what constitutes security may evolve. This case, along with the Coinbase lawsuit, could set significant precedents for the regulatory landscape of digital assets in the United States.
Read Also: Kraken Disputes SEC Claims, Cites Previous ICO Cases for Support
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
US SEC Acknowledges Fidelity’s Filing for Solana ETF

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the filing for Fidelity’s spot Solana (SOL) Exchange-Traded Fund (ETF).
This marks a key development in the financial industry, as Fidelity seeks to list its Solana ETF on the Cboe BZX Exchange. The acknowledgment comes after Fidelity submitted a proposed rule change, paving the way for the potential approval of the product.
Fidelity’s Spot Solana ETF Proposal
The SEC’s acknowledgment follows Fidelity’s filing to list and trade shares of the Fidelity Solana Fund under the Cboe BZX Exchange. The proposed rule change, initially submitted on March 25, was later amended on April 1, 2025, to clarify certain points and add additional details.
The amended proposal aims to list the Solana ETF under BZX Rule, which pertains to commodity-based trust shares. According to the Cboe BZX Exchange, Fidelity plans to register the shares with the SEC through a registration statement on Form S-1.
Fidelity’s experience with crypto ETFs, having launched the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH), has prepared it for this new initiative. FBTC has drawn substantial interest, accumulating nearly $17 billion in assets, while FETH currently manages around $975 million.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
US Senate Banking Committee Approves Paul Atkins Nomination For SEC Chair Role

The U.S. Senate Banking Committee has voted to approve Paul Atkins’ nomination for the role of Chair of the Securities and Exchange Commission (SEC). The vote, which took place on Thursday, passed with a narrow margin of 13-11, along party lines.
Paul Atkins, nominated by President Donald Trump, now moves one step closer to taking over the top regulatory position at the US SEC.
Senate Banking Committee Approves Paul Atkins Nomination
Paul Atkins’ nomination for SEC Chair has received approval despite sharp opposition from Democratic members of the Senate Banking Committee. The vote was entirely split, with Republicans supporting Atkins and all Democrats opposing the decision.
This partisan divide highlights the contentious nature of Atkins’ confirmation, which had been under scrutiny for several reasons.
The committee’s approval now clears the path for Atkins to proceed to the full Senate for a final confirmation vote. Given the Republican-controlled Senate, it is widely expected that Atkins will secure the necessary votes to take over the SEC leadership. With Republicans holding a 53-47 majority in the Senate, the confirmation process is anticipated to move forward swiftly.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Kraken Obtains Restricted Dealer Registration in Canada

Cryptocurrency exchange Kraken has obtained a Restricted Dealer registration in Canada. The registration comes after completing a pre-registration undertaking (PRU) process with Canadian authorities.
The exchange has also announced the appointment of Cynthia Del Pozo as its new General Manager for North America. Del Pozo will oversee Kraken’s growth initiatives in Canada.
Kraken Completes PRU Process In Canada
Kraken’s Restricted Dealer registration marks the completion of a thorough pre-registration undertaking (PRU) process with Canadian regulators. The registration places Kraken under the supervision of the Ontario Securities Commission (OSC). This oversight ensures users have access to secure crypto products within a properly regulated local ecosystem.
According to the Canadian Securities Administrators (CSA), the Restricted Dealer registration is one of eight firm registration types in Canada. This particular classification is used for firms that “do not quite fit under any other category.” It also comes with specific requirements and conditions set by securities regulators.
Kraken’s regulatory achievement comes during a period of change in the Canadian crypto sector. Just months earlier, competitor Gemini exchange announced its departure from the Canadian exchange market by the end of 2024. This was a move that surprised many and raised questions about cryptocurrency regulation clarity in the country.
Kraken Introduces New Canadian GM
Del Pozo has joined Kraken to lead its Canadian operations as the new General Manager for North America. She has nearly 15 years of experience in corporate development, operations, and fintech consulting. Del Pozo will help to guide Kraken’s expansion across Canada during this important phase of crypto’s development in the region.
“Canada is at a turning point for crypto adoption, with a growing number of investors and institutions recognizing digital assets as a vital part of the financial future. I’m thrilled to join Kraken’s mission at this critical moment, and to lead our expansion efforts, ensuring we continue to serve our clients long-term with innovative and compliant products,” said Del Pozo.
In her role, Del Pozo will focus on strengthening Kraken’s regulatory relationships and also scaling the company’s presence throughout North America.
Del Pozo also commented on the registration achievement: “This Restricted Dealer registration is testament to the high bar Kraken has always set for consumer protection, client service, and robust security. We’re excited to continue expanding our world-class investment platform and to deliver innovative products that provide real-world utility to Canadians.”
The Exchange’s Continued Growth In Canada
Over the past two years, the cryptocurrency exchange has shown steady expansion in Canada while working through the PRU process with regulators. During this period, the exchange has doubled its team size and monthly active users.
According to the official blog post figures, the firm now has more than $2 billion CAD in total client assets under custody. Kraken has also increased support for some of the most popular cryptocurrencies. It provides several CAD spot trading pairs that enable Canadians to trade crypto without paying expensive foreign exchange fees.
According to Innovative Research Group’s 2024 Investor Survey, 30% of Canadian investors currently own or have owned cryptocurrencies. Likewise, a KPMG Canada survey discovered that 30% of Canadian institutional investors now have exposure to cryptocurrencies, which means widespread adoption across investor types.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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