PANews reported on November 19 that according to CoinDesk, after the U.S. Securities and Exchange Commission (SEC) accused the cryptocurrencies on the Kraken exchange platform of being considered securities, California Judge William Orrick today rejected Kraken's motion for a temporary appeal, saying that the appeal would "only delay the resolution of the case." Kraken, the second largest cryptocurrency exchange in the United States, had earlier applied for a temporary appeal in September, attempting to challenge Judge Orrick's ruling that the SEC's charges were established.
In his ruling on Monday, Judge Orrick stressed that allowing the interim appeal was entirely discretionary and questioned the argument of Kraken's lawyers that an appeal could hasten the end of the case. He stated, "I simply do not believe that certification will materially advance the ultimate resolution of the litigation. While the SEC's theory of securities violations against Kraken has been reasonably advanced, only through the discovery process can it be determined whether the sales, transactions, and exchanges on Kraken actually satisfied all of the elements of the Howey test... A complete record is needed to answer these questions. Certifying an appeal at this stage will only delay resolution."
The SEC sued Kraken last November, claiming that it was not registered as a securities exchange, broker, dealer, and clearing agency, and required Kraken to pay damages and civil penalties, while requesting a permanent injunction. Kraken denied any wrongdoing and sought to dismiss the case, but the motion was denied in August.
