Kraken’s Interlocutory Appeal Rejected by Judge, Delaying SEC Case Resolution

According to a recent report from Coindesk, a California judge has dismissed Kraken’s interlocutory appeal, highlighting the potential for delays in the ongoing case with the U.S. Securities and Exchange Commission (SEC). In a ruling issued on November 19th, Judge William Orrick of the U.S. Northern District pointed out that pursuing the appeal would not significantly accelerate the resolution of the litigation surrounding the cryptocurrency exchange.

Kraken’s appeal, filed in September, challenged the SEC’s allegations that the tokens traded on its platform could be classified as securities under the Howey Test. Judge Orrick noted that appellate review is a matter of discretion and is unlikely to bring a swift conclusion to the case, which originally began with the SEC’s lawsuit in November of the prior year. The SEC accuses Kraken of operating as an unregistered securities exchange, seeking disgorgement of profits along with civil penalties and a permanent injunction against the business. Kraken maintains its innocence and has sought dismissal of the allegations, although this request was rejected in August.