In a recent development, Kraken, a cryptocurrency exchange in the United States, has filed a request to the court to throw out a case brought against it by the U.S. Securities and Exchange Commission (SEC). Reports suggest that Kraken argues the SEC's case should be dismissed due to inappropriate language used by the SEC in its filings.

Kraken pointed out that the SEC failed to specify any investment contracts that were traded or handled on its platform. Instead, the SEC used terms like investment "concept" and "ecosystem" rather than "investment contract" and "enterprise" in its arguments.

This legal tussle between the SEC and Kraken began in November 2023, when the SEC accused the cryptocurrency exchange of improper registration and mixing customers' funds. Kraken responded last February, aligning its legal arguments with those of competitors like Binance and Coinbase facing similar lawsuits.

Kraken alleges that the SEC's lawsuit is a form of retaliation for political speech. It cites a speech made by Marco Santori, Kraken's chief legal officer, before Congress in May of the previous year, where he criticized the SEC's authority. Kraken insists that individuals in the crypto industry should not be penalized for expressing their political views.

Moreover, Kraken's latest filing also seeks to dismiss the SEC's recent motion to prevent a significant change in the U.S. financial regulatory system. Kraken argues that the SEC's proposed expansion of its jurisdiction to cover various investment activities should be debated in Congress rather than decided in the courts.

In conclusion, Kraken's legal maneuvering against the SEC underscores the ongoing battle between cryptocurrency exchanges and regulatory authorities. The outcome of this case could have significant implications for the future regulation of the crypto industry in the United States.