US Senator Lummis Takes On The SEC’s Approach To Kraken
Recently, the United States Securities and Exchange Commission (SEC) sued the US-based crypto exchange Kraken. They allege that Kraken didn’t comply with security regulations for crypto trading, putting investors at risk by mixing $33 billion in client assets with its own. However, Kraken plans to fight the SEC’s claims in court, as they have asserted that they operate with lawfulness and transparency.
US Senator Cynthia Lummis criticized the SEC’s move, claiming that the regulatory body does not have clear crypto rules. She called for a specific regulatory frame for the SEC to outline security and commodity assets. Lummis urged Congress to pass the Lummis-Gillibrand Responsible Financial Innovation Act to regulate the SEC and support financial innovation in the US.
Importance of the SEC’s Complaint
Contrary to the SEC’s claims, Kraken insists they have not engaged in fraud, market manipulation, customer losses, or hacking. The lawsuit suggests that Kraken’s services act as investment contracts, but these claims are false according to Kraken. Kraken’s version highlights the urgency for more concrete crypto regulation.
Hot Take: SEC vs. Kraken Raises Regulatory Concerns
The SEC’s approach towards Kraken should be seen as a point of concern for the crypto space. Without clear crypto rules, the SEC’s actions might harm customers and block financial innovation in the US. Clear regulatory jurisdiction is necessary for a thriving crypto market.
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