Court Rejects Kraken's Request for Documents
In the legal battle between cryptocurrency exchange Kraken and the U.S. Securities and Exchange Commission (SEC), the court issued a significant ruling. It denied Kraken's request to compel the production of documents related to Bitcoin (BTC), Ethereum (ETH), public SEC statements, and internal regulatory policies on digital assets.
Court Dismisses Kraken's Request for SEC Documents
Magistrate Judge Robert Illman of the California court rejected Kraken’s demand for key documents. Kraken sought evidence on why the SEC excluded Bitcoin and Ethereum from its complaint, despite these assets being traded similarly to 11 other tokens on the platform.
The court found this request “unpersuasive”, stating that it was overly broad and irrelevant to the SEC’s claims regarding the 11 tokens. Additionally, the court noted that such requests would impose an unnecessary burden on both parties.
SEC Policies and Public Statements Deemed Irrelevant
Kraken also requested access to internal SEC policies and guidance regarding digital assets, including the application of the Howey Test to tokens traded on its platform. The court ruled that such information extends beyond the scope of tokens like ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL, making it irrelevant to the case.
The judge stated:
“For the reasons outlined below, the defendants' motion to compel the requested information is denied.”
The court further rejected Kraken’s request for evidence related to public SEC statements about digital asset regulation. While Kraken argued that former SEC Division Director William Hinman’s remarks were relevant to the status of Bitcoin and Ethereum under federal securities laws, the court found this argument insufficiently supported.
SEC Arguments and Prior Court Rulings
Judge William Orrick previously confirmed that contracts and expectations related to sales could form an investment contract. Based on this reasoning, the court had earlier denied Kraken’s motion to dismiss the SEC lawsuit.
The SEC contended that during initial offerings and subsequent transactions on Kraken, these assets were sold as investment contracts, in violation of federal securities laws.
Ripple and SEC Appeals
As part of broader regulatory issues in the crypto industry, the SEC plans to file its principal appeal brief by January 15. Meanwhile, Ripple has countersued, criticizing the SEC’s rules and guidance as inconsistent and unclear. Ripple’s appeal focuses on defining an investment contract, institutional sales of XRP, and fair notice protections.
The Kraken vs. SEC case highlights the complexities of cryptocurrency regulation and is likely to set a precedent for future legal disputes in the industry.

#Kraken , #SECCryptoRegulation , #CryptoNewss , #digitalassets , #cryptoregulation

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Not only was Kraken's Layer 2 launched early, but it is also supported by numerous DeFi projects and Optimism from the outset.

Crypto exchange Kraken has officially launched its Layer 2 (L2) blockchain, Ink. This event occurred several months ahead of the original plan, as Kraken had initially scheduled the release for early 2025. The early launch highlights Kraken’s push to expand its ecosystem amid other exchanges developing their own custom Layer 2 solutions.

trợ tương tác chuỗi chéo giữa các blockchain.ChatGPT đã nói:ChatGPT
Ink is built using Optimism's OP Stack technology, a scalability solution for the Ethereum blockchain. The OP Stack is a customizable toolkit that enables the creation of interoperable Layer 2 solutions. This means that Ink can interact with other blockchains using OP Stack, such as Coinbase’s Base.
Prior to its official launch, Ink underwent a successful testnet phase, recording impressive numbers, including:
Over 8.17 million transactions processed.More than 1.22 million wallet addresses engaged.Over 90,600 tokens deployed on the network.
Ink’s ecosystem is also supported by strategic partners, including DeFi applications like Curve, Frax, Gelato, and LayerZero. The participation of these applications aims to enhance liquidity and encourage both users and developers to engage with Ink’s ecosystem.
Curve is a popular decentralized exchange (DEX) in DeFi, Frax is a stablecoin platform, Gelato provides Layer 2 infrastructure, and LayerZero facilitates cross-chain interoperability.

Kraken has announced that Ink will reach its Decentralization Stage (Stage 1) in January 2025. At this stage, the "permissionless fault proofs" mechanism will be activated. This mechanism allows anyone to audit and dispute potentially invalid transactions, thereby enhancing accountability and transparency within the network.
With the launch of Ink, Kraken is joining the trend of developing custom Layer 2 solutions, similar to other major exchanges. Coinbase's Base is a prominent example of the success of this model, with steady revenue since its launch. Additionally, Ink is among the blockchains built on Optimism's OP Stack, alongside notable projects like Sony's Soneium and World Chain.
After updating to the new token standard introduced by Optimism, users can now interact with and trade Superchain ERC20 tokens. This not only expands connectivity with other chains in the Superchain ecosystem but also provides access to popular DeFi products such as decentralized exchanges (DEX), lending platforms, cross-chain bridges, and liquid staking.

Before launching Ink, Kraken made several strategic changes. In October, Kraken announced a restructuring plan that included staff cuts, streamlining the management structure, and appointing Arjun Sethi as Co-CEO. This move helps Kraken optimize its operations and focus resources on long-term strategic projects, including the development of Ink.

Ink represents Kraken's commitment to making crypto more accessible to everyone. We want to eliminate the barriers that once existed between the centralized (CEX) and decentralized (DEX) worlds.
-- Kraken --
Additionally, Kraken has received a grant of 25 million OP tokens from the Optimism Fund to support the development of Ink. This funding enables Kraken to implement OP Stack technology and accelerate the launch of Ink. The support from the Optimism Fund also reflects the community's confidence in the project.

#Layer2Coin #NewsAboutCrypto #MarketNewHype #INK #kraken
$BTC $ETH $SOL

The cryptocurrency market on December 19 remains a hot topic for both investors and enthusiasts. While major digital assets have slightly dipped in price, a series of intriguing developments and forecasts continue to shape the industry's future. Let’s dive into the details!
Bitcoin and Ethereum Under Pressure, but No Cause for Panic
Bitcoin $BTC is trading at $101,316, down 2.16% over the past 24 hours.
Ethereum $ETH has also dropped, now priced at $3,674.76, marking a 4.20% decline.
Despite these corrections, analysts believe the market is merely consolidating after a recent bullish rally.
Key Events of the Day
1. #Kraken ken Launches Ink Blockchain
Kraken surprised the market by launching its second-layer blockchain, Ink, ahead of schedule. Built on OP Stack technology, Ink is designed to speed up transactions and reduce costs within the Ethereum network.
2. El #Salvador vador Adjusts Its Bitcoin Policy
In a significant move, El Salvador has made Bitcoin usage voluntary. Taxes will now only be payable in US dollars. This decision comes as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF).
3. #BlackRlock ckRock Questions Bitcoin’s Fixed Supply
Financial giant BlackRock stirred up debate by suggesting that Bitcoin's fixed supply may not be guaranteed. This has reignited discussions about Bitcoin's role as an anti-inflation asset.
Forecasts: What’s Next?
Experts predict that in the long term, cryptocurrencies could benefit from changes in U.S. Federal Reserve policies. Easing inflationary pressures under the new administration might bolster crypto prices in the coming months.
Conclusion:
While the market is currently undergoing a correction, major developments and statements highlight the growing interest in cryptocurrencies. Technological advancements, such as the launch of Ink, and political shifts, like those in El Salvador, are undoubtedly shaping the industry's future.
Stay tuned—this is just the beginning!