Judge Orrick of Kraken's hearing on the Securities Exchange Commission's (SEC) motion to dismiss said at the end of the hearing that he "will take some time to study things carefully and does not want to hear any thoughts on" major issues of principle ". At the start of the hearing, Orrick, after reading two briefs, agreed with the SEC's arguments and asked Kraken's lawyers if he could change his mind. In conversations with lawyers who have listened to today's proceedings, industry insiders said it was reasonable to assume that Orrick would let the matter go to the investigation stage. As with the Coinbase case, the SEC's threshold for proving that they have at least some reasonable legal basis to proceed with their case against Kraken is very low.