The U.S. Securities and Exchange Commission is urging a federal court to dismiss three defenses presented by cryptocurrency exchange Kraken in an ongoing lawsuit concerning alleged securities violations.

The SEC’s motion, filed on November 5, challenges Kraken’s assertion that there is insufficient legal clarity on which digital assets qualify as securities.

The SEC originally sued Kraken in November 2023, accusing the exchange of operating as an unregistered securities exchange, broker, and clearing agency.

According to the SEC, Kraken’s platform facilitated the trading of cryptocurrency securities without proper registration, generating significant revenue for the exchange.

Kraken sought to dismiss the lawsuit in August, but the court ruled in favor of the SEC, allowing the case to …