The U.S. Federal Court for the Northern District of California rejected a request by cryptocurrency exchange Kraken to dismiss the SEC's lawsuit in an Aug. 23 ruling alleging that Kraken operated an unregistered securities trading platform. The court found that the SEC's allegation that certain cryptocurrency transactions on Kraken's platform constituted investment contracts was reasonable, and a final ruling in the case has yet to be made. Kraken's legal director, Marco Santori, said it would prove that the transactions did not meet the requirements of the Howey test.