A California judge has ruled that cryptocurrency exchange Kraken must face a lawsuit brought by the US Securities and Exchange Commission (SEC) for allegedly operating as an unregistered securities exchange. The judge found the SEC's argument plausible that certain cryptocurrencies sold on Kraken’s platform are investment contracts and thus securities. This follows a broader regulatory crackdown on the crypto industry under SEC Chair Gary Gensler. Separately, Kraken's Australian operator, Bit Trade Pty Ltd, lost a case against the Australian Securities and Investments Commission (ASIC), which found the firm failed to comply with design and distribution obligations for its margin trading product. The Australian court classified Bit Trade’s product as a credit facility, leading to expected financial penalties. These rulings signal increased regulatory scrutiny and enforcement actions against major crypto exchanges globally.