The U.S. Securities and Exchange Commission (SEC) is stirring up the crypto world again, this time targeting Kraken, the cryptocurrency exchange. In their lawsuit filed on Monday, the SEC identified 16 crypto tokens traded on Kraken as securities. Interestingly, some of these tokens are the same ones that were flagged in previous SEC lawsuits against major exchanges like Coinbase and Binance.

Kraken’s CEO isn’t taking this lightly, emphasizing on social media, ‘We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.’

The SEC’s complaint specifically mentions tokens such as ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL. These tokens have previously been subject to SEC enforcement actions, making the legal battle even more complex.

SEC Chairman Gary Gensler has been consistent in his stance that all crypto tokens, except bitcoin, should be treated as securities. However, a recent court ruling provided a glimmer of hope for the crypto community by stating that XRP is ‘not necessarily a security on its face.’

“This legal saga echoes similar battles with Coinbase and Binance, where the SEC identified multiple tokens as securities. In June, the SEC targeted Coinbase, naming tokens like ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC as meeting the criteria of investment contracts. Binance faced a similar situation in the same month, with 12 tokens labeled as securities, including BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.”

Kraken, like its counterparts, is vehemently opposing the SEC’s claims. In response, Kraken CEO Dave Ripley stated, ‘We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.’ Coinbase has taken a similar stand, with its chief legal officer, Paul Grewal, arguing that the SEC’s interpretation of an ‘investment contract’ violates the law.

This legal tussle has caught the attention of U.S. Senator Cynthia Lummis, who is now urging Congress to ‘pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity.’ Lummis emphasized the need for clarity, stating, ‘The SEC cannot continue ruling by enforcement. Crypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers.