The United States Securities and Exchange Commission is apparently looking into whether cryptocurrency exchange Kraken broke any rules regarding the selling of securities.
The investigation focuses on specific services that Kraken provided to customers in the United States. It is unclear at this time, though, which offerings the securities regulator is paying close attention to.
There aren’t any tokens out there that are securities that we’re interested in listing, said Kraken CEO Dave Ripley in September, adding that he didn’t see a need to register Kraken as an exchange with the SEC because it doesn’t offer securities.
Gary Gensler, the chairman of the SEC, has asserted numerous times that he views most cryptocurrencies other than Bitcoin as securities. The sale of LBRY Credits (LBC) in the secondary market, however, does not constitute a security, the SEC recently conceded during a Jan. 30 appeal hearing in the LBRY v. SEC case. The judge was persuaded by an argument from attorney John Deaton highlighting the fact that the courts had never deemed the underlying asset to be a security in similar cases.
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