Paradigm Files Amicus Brief in SEC v. Kraken

March 1, 2024 | Gina Moon, Rodrigo Seira, Justin Slaughter

Today, Paradigm filed an amicus brief in SEC v. Kraken, the latest in the litany of SEC “regulation by enforcement” actions taken by the Commission on major U.S. crypto exchanges. As we have said on numerous other occasions, the SEC’s approach here is wrongheaded and contrary to clear legal precedent. The SEC cannot simply will that all tokens are securities simply because it wants them to be. The SEC’s legal analysis on why these tokens are securities is lacking, and this case will not absolve the SEC or the rest of the government from the need to craft a workable, comprehensive regulatory framework for crypto.

What is needed more than ever is comprehensive legislation that covers all aspects of digital assets and lets this industry grow here in the U.S. The Kraken action is a distraction from that important goal.