Kraken Chief Legal Officer: Court rejects SEC's decision to classify cryptocurrency assets as securities, but still allows case to be further reviewed

According to Foresight News, Marco Santori, Chief Legal Officer of Kraken, stated that "the Federal Court for the Northern District of California has ruled today that the tokens traded on Kraken are not securities. For Kraken, this is a major victory for both clear principles and cryptocurrency users around the world. This also confirms Kraken's long-term stance of not listing securities. In addition, the court also believes that the concept of 'encrypted asset security' invented by the SEC for personal gain is unclear at best and confusing at worst. The court also pointed out the SEC's scarecrow strategy, questioning why the SEC has consistently inaccurately described Kraken's position as requiring a 'written contract' to have securities. However, the court still allows for the disclosure of evidence in the case. Fundamentally, the court made the same distinction in the Kraken case as in the Ripple case: tokens are not securities, but the protocols surrounding tokens can be securities