On November 7, it was reported that the U.S. Securities and Exchange Commission (SEC) had filed a motion in the Court for the Northern District of California seeking to dismiss Kraken's key defense in the ongoing legal dispute between the two parties. According to the motion filed Tuesday, the regulator argued that Kraken had received advance notice of fairness when it accused Kraken of violating securities laws by offering crypto assets as an "investment contract." The timing of the SEC's filing of the motion on Election Day drew criticism from Kraken's legal team, which they believed was a strategy to circumvent "investigations into the SEC's flaws and inconsistent policies."