SEC sues Kraken crypto exchange over failure to register

(Reuters) — The U.S. Securities and Exchange Commission Monday sued Kraken, one of the world’s largest cryptocurrency exchanges, accusing it of illegally operating as a securities exchange without first registering with the regulator.

The lawsuit, filed in federal court in San Francisco, is the latest step in SEC Chair Gary Gensler’s push to bring cryptocurrency under his agency’s purview, by contending that digital assets are investment contracts subject to federal securities laws.

Kraken intends to defend itself, saying Congress should decide how to regulate cryptocurrency exchanges and calling the SEC view of digital assets “incorrect as a matter of law, false as a matter of fact, and disastrous as a matter of policy.”

In June, the SEC filed similar lawsuits against Binance, the world’s largest cryptocurrency exchange, and Coinbase, the largest in the United States. Both are defending against the regulator’s claims.