A district judge cast doubt on crypto exchange Kraken's move to dismiss claims brought against it by the U.S. Securities and Exchange Commission.

Judge William H. Orrick of the U.S. District Court for the Northern District of California told the courtroom on Thursday he was "inclined to deny" a motion to dismiss a lawsuit between the two.

"I think it's plausible that the crypto assets are offered and sold as investment contracts," Orrick said.

In November, the SEC sued Kraken’s parent firms, Payward and Payward Ventures, for allegedly operating an online trading platform. Kraken moved to dismiss the lawsuit in February. Since then, a group of eight U.S. state attorneys general filed an amicus brief arguing the SEC's lawsuit exceeded the agency's authority, while Kraken has filed …