Kraken has responded to the SEC's complaint with a final brief arguing for dismissal, criticizing the SEC for failing to define a specific investment contract trading on the platform and instead citing vague investment-like "expectations" and "concepts." The exchange insists on the necessity of a concrete contract for an investment contract, challenging the SEC's broader interpretations and advocating for clearer regulatory frameworks.

Crypto exchange Kraken is looking to raise more than $100 million as part of plans to go public in the United States. Rumors have been circulating about Kraken's plans to go public for the past few years, but the firm has recently been fighting accusations from the SEC about operating an unregistered brokerage. The round could be completed by the end of the year.

Blockchain security firm CertiK said it found a vulnerability in Kraken's deposit system and was transferring funds back to the exchange amid a bug bounty dispute. Kraken's Chief Security Officer claims that individuals in Certik were extorting Kraken. Certik claims that Kraken threatened these individuals after making unreasonable requests regarding returning funds.

The Federal Court for the Northern District of California ruled that none of the tokens on Kraken are securities and that the definition of SEC's “crypto asset security” is confusing and unclear. The case is proceeding to discovery, as agreements or contracts around a token could be considered a security. The SEC will have to prove that transactions on exchanges satisfy the Howey test, which is an arduous task to take across the industry.

The Ethereum Foundation holds $845 million in ETH, representing 0.25% of the total supply. It allocates funding to education, research, and development, which has led to the development of zero-knowledge cryptography and funded conferences, online courses, and novel projects like the ZK Email Wallet and Daimo payment protocol. The foundation recently came under fire for transferring $100 million to Kraken for future expenses as some in the community call for greater transparency.