In a recent ruling by Judge William Orrick, Kraken’s argument that Congress did not delegate powers over cryptocurrency to the SEC was dismissed. The SEC’s authority over crypto continues to be affirmed as part of an ongoing effort to regulate digital assets.
Despite the ruling against its major questions doctrine defense, Kraken’s claim for ‘fair notice’ remains valid, suggesting that the SEC did not adequately inform Kraken of potential regulatory violations. This emphasizes the regulatory complexities facing cryptocurrency exchanges.