A federal district court in California allowed Kraken to proceed with its fair notice and due process defenses against a Securities and Exchange Commission lawsuit, but ruled that the major questions doctrine does not apply because cryptocurrencies have not yet risen to a level “to impose massive influence over the American economy,” as the U.S. Supreme Court contemplated.

In doing so, U.S. District Judge William H. Orrick of the Northern District of California noted that the SEC’s theory behind this case and similar enforcement actions is that “well-established securities laws apply with equal force to Kraken as a crypto platform because Kraken’s activities bring it within the ambit of the SEC’s authority as Congress envisioned it.”