The Securities Exchange Commission (SEC) has filed a motion in the Northern District of California court seeking to dismiss Kraken's key defense in the ongoing legal dispute between the two parties. According to the motion filed on Tuesday, the regulator argued that Kraken had received prior fair notice when it alleged that it violated securities laws by offering cryptoassets as "investment contracts." The timing of the SEC's filing of the motion on Election Day drew criticism from Kraken's legal team, who saw it as a strategy to circumvent "investigations into SEC deficiencies and inconsistent policies."