Is Kraken running an unregistered securities exchange?

In recent weeks, there have been growing concerns surrounding the operations of Kraken, a leading cryptocurrency exchange platform. Given the stringent regulations surrounding securities exchanges, particularly in the wake of the recent financial crises, it begs the question: Is Kraken operating an unregistered securities exchange? This query is paramount as unregistered exchanges may be engaging in activities that violate securities laws, potentially exposing investors to undue risks. Moreover, such unregistered platforms may lack the necessary oversight and safeguards to ensure fair and transparent trading practices. Therefore, it is crucial to determine whether Kraken is indeed operating an unregistered securities exchange and, if so, what steps need to be taken to address this issue.