Reuters Kraken, one of the world39;s largest cryptocurrency exchanges, was sued on Monday by the U.S. Securities and Exchange Commission, which accused it of illegally operating as a securities exchange without first registering with the regulator.

The lawsuit in San Francisco federal court is the latest step in SEC Chair Gary Gensler39;s push to bring cryptocurrency under his agency39;s purview, by contending that digital assets are investment contracts subject to federal securities laws.

Kraken intends to defend itself, saying Congress should decide how to regulate cryptocurrency exchanges and calling the SEC view of digital assets incorrect as a matter of law, false as a matter of fact, and disastrous as a matter of policy.

The San Franciscobased exchange also said the lawsuit will not affect its more than 10 million clients.

In June, the SEC filed similar lawsuits against Binance, the world39;s largest cryptocurrency exchange, and Coinbase, the largest in the United States. Both are defending against the regulator39;s claims.

The SEC said Payward Inc and Payward Ventures Inc, which operate as Kraken, have since 2018 made hundreds of millions of dollars arranging crypto purchases and sales while turning a blind eye to securities laws designed to protect investors.

Kraken was also accused of having deficient internal controls and inadequate record keeping, reflected in part in its commingling customer money with its own and paying operating costs directly from…