The judge rejected Kraken's defense under the "major questions doctrine" in the SEC case, stating that the SEC has the authority to regulate cryptocurrencies but acknowledged the validity of the defense regarding insufficient notice of the violation 📜

A California judge rejected the defense of the cryptocurrency exchange Kraken, based on the argument that the SEC does not have the authority to regulate cryptocurrencies. The judge stated that the SEC is not using powers beyond those that Congress could grant it, and that cryptocurrency does not have as significant an impact on the U.S. economy as, for example, the energy sector or student loans. However, Kraken's defense regarding the lack of notice of the violation was deemed valid. The SEC accuses Kraken of illegal activity without registration since 2018.