Kraken Co-founder’s Harsh Critique of the SEC
Jesse Powell, the co-founder of the cryptocurrency exchange Kraken, has openly criticized the United States Securities and Exchange Commission (SEC) following a lawsuit filed against his company. In a recent statement, Powell referred to the SEC as the “top decel” in the U.S., a term denoting entities that hinder progress, especially in the tech industry.
Recent SEC Lawsuit Against Kraken
The SEC’s recent lawsuit against Kraken accuses the crypto exchange of violating several securities laws. This legal action comes after Kraken settled with the SEC for $30 million in February over allegations of offering unregistered crypto staking services. Powell’s reaction to the lawsuit was shared on X (formerly known as Twitter), where he expressed his frustration over what he perceives as repeated and unjustified legal actions by the SEC.
Warning to Other Crypto Firms
Powell’s remarks extend beyond his defense of Kraken. He issued a stark warning to other cryptocurrency companies operating in the U.S., advising them to relocate to avoid similar legal entanglements. His statement underscores the escalating tension between crypto businesses and U.S. regulatory bodies.
SEC’s Accusations and Kraken’s Response
The SEC has leveled serious accusations against Kraken, including the failure to register as a securities broker and the alleged commingling of customer and company funds. While Kraken denies these allegations, stating that they have not listed unregistered securities, the company acknowledges the challenge they face in defending themselves against these claims.
Continued Debate Over Crypto Regulation in the U.S.
The ongoing dispute between Kraken and the SEC highlights the broader conversation about cryptocurrency regulation in the United States. As the industry continues to evolve, regulatory agencies like the SEC are increasingly scrutinizing crypto businesses, leading to conflicts that could shape the future of digital currencies in the U.S.