SEC Lawsuit Against Kraken Ignites Crypto Debate and Market Volatility

The Securities and Exchange Commission (SEC) has filed a lawsuit against Kraken, one of the world's largest cryptocurrency exchanges, accusing it of operating as a securities exchange without proper registration. The move by the SEC has sparked criticism from the crypto industry and advocates, leading to renewed calls for Congress to provide regulatory clarity for digital assets. Kraken denies dealing in securities and plans to vigorously defend its position. The SEC has previously filed similar lawsuits against Binance and Coinbase, and the industry has spent over $20 million on federal lobbying in 2023. Congress has yet to pass a comprehensive framework for regulating the crypto industry, prompting calls for legislative action.