- Kraken and the SEC extend objection filing deadline to March 31, 2025, to refine document production requests.
- Dispute centers on SEC’s refusal to provide documents related to Bitcoin and Ether’s regulatory status and internal policies.
In a recent procedural development, Kraken, a well-established cryptocurrency exchange, and the U.S. Securities and Exchange Commission (SEC) submitted a joint stipulation regarding a legal discovery dispute.
This filing, dated December 23, marks a key moment in the ongoing dialogue between the cryptocurrency firm and regulatory bodies concerning the accessibility of certain documents.
“On November 19, 2024, the Parties filed a joint statement regarding a discovery dispute over the SEC’s objections to Kraken’s requests for three categories of documents”
The core of the dispute revolves around Kraken’s request for the SEC to disclose documents related to Bitcoin and Ether, as well as the agency’s public statements and internal trading policies regarding digital assets.
These documents are deemed by Kraken to be crucial for its defense and understanding of the SEC’s regulatory approach to similar assets.
Previously, Magistrate Judge Robert M. Illman denied Kraken’s motion to compel the production of these documents in November, prompting Kraken to refine its requests to align with the judge’s ruling.
Despite the initial denial, the stipulation between Kraken and the SEC indicates a mutual agreement to extend the deadline for filing objections to this order until March 31, 2025, suggesting ongoing negotiations.
Kraken intends to file narrower production requests in light of the Order and the Parties intend to meet and confer on such narrower requests.
Kraken is represented by Matthew C. Solomon, a prominent attorney known for his role in major legal defenses, who argues that the requested documents are essential for establishing a fair legal framework for cryptocurrencies.
The exchange has challenged the magistrate’s decision, maintaining that the information is pertinent to the case, particularly concerning the regulatory status of Bitcoin and Ether.
Additionally, the discussion around the legal classification of these cryptocurrencies has been influenced by former SEC official William Hinman’s public comments, which Kraken asserts are central to understanding their status under federal securities laws.
This is part of a broader argument that includes the fair notice defense and the major questions doctrine, emphasizing the need for clarity in how digital assets are regulated.
The Parties have agreed to suspend Kraken’s deadline to file objections to the Order until March 31, 2025, and agree to discuss a further extension as necessary.
This case is set against a backdrop of increasing regulatory scrutiny of cryptocurrencies and is closely watched by the industry.
It coincides with calls from Ripple’s Chief Legal Officer, Stuart Alderoty, for the incoming Trump administration to resolve ongoing SEC lawsuits and clarify regulatory policies to foster trust and stability in the cryptocurrency market.
