Judge William H. Orrick of the United States District Court for the Northern District of California has ruled that the lawsuit brought by the Securities and Exchange Commission (SEC) against the Kraken cryptocurrency exchange will proceed to trial. The SEC alleges that Kraken failed to register as a broker, exchange, or clearinghouse, and claims that some cryptocurrency trading on its platform constitutes an investment contract, which falls under the category of securities. Despite Kraken's attempts to dismiss the case, arguing that cryptocurrencies do not meet the definition of securities under the Howey test, Judge Orrick decided that the case should continue. He stated that while cryptocurrencies themselves may not be securities, their trading contracts could constitute investment contracts and thus should be subject to securities laws. This case indicates that the SEC is expanding its regulatory scope beyond exchanges to include specific cryptocurrencies, such as Cardano (ADA) and Solana (SOL).