Kraken won’t get the chance to appeal a California District Court judge’s decision that found the SEC had adequately alleged it sold unregistered securities.
A California federal judge has knocked back crypto exchange Kraken’s bid to appeal his decision to allow a Securities and Exchange Commission lawsuit to proceed as it “would only delay resolution.”
Judge William Orrick wrote in a Nov. 18 order dismissing Kraken’s motion for interlocutory appeal that he found the SEC had “adequately alleged” that crypto traded and sold on Kraken were investment contracts under the Howey test and subject to securities laws.
“Fundamentally, I do not believe that certification will materially advance the ultimate termination of the litigation,” he wrote. “While the SEC has plausibly alleged its theory of securities violations against Kraken, only discovery will establish whether the sales, trades, and exchanges on Kraken truly met all the Howey elements.”
