A California judge has dismissed Kraken’s request for an interlocutory appeal, asserting in his decision that allowing such an appeal would only "delays resolution" of the ongoing case brought by the U.S. Securities and Exchange Commission (SEC) against the crypto exchange.

Kraken, which is the second-largest cryptocurrency exchange in the U.S., had filed this motion in September. This was a month after Judge William Orrick ruled that the SEC had adequately alleged that the cryptocurrencies sold on its platform could be classified as securities under the Howey Test.

In their request, Kraken's legal team argued that Orrick should authorize an appeal, citing that his order involved a significant issue of law and that an immediate appeal might expedite the litigation.

However, Orrick was unyielding, ensuring in his ruling that permitting the interlocutory appeal was a discretionary power. He reminded Kraken's lawyers that he did not believe such an appeal would hasten the case’s conclusion.

"Fundamentally, I do not believe that certification will materially advance the ultimate termination of the litigation," Orrick noted in his ruling. "While the SEC has plausibly alleged its theory of securities violations against Kraken, only discovery will establish whether the sales, trades, and exchanges on Kraken truly met all the Howey elements… A complete record is necessary to answer those questions. Certification at this stage would only delay resolution."

The SEC had previously initiated a lawsuit against Kraken in November, asserting that it was operating as an unregistered securities exchange and involved in actions that could potentially warrant financial penalties. Although Kraken denied any wrongdoing, a motion to dismiss the SEC's claims was rejected in August.