Jesse Powell Criticizes US SEC
Jesse Powell, the co-founder of cryptocurrency exchange Kraken, has criticized the United States Securities and Exchange Commission (SEC) over its latest legal action. Powell referred to the SEC as “USA’s top decel” in a tweet, stating that the regulator has initiated another assault on America.
SEC Accuses Kraken of Violating Laws
The SEC recently sued Kraken, accusing the firm of violating several securities laws and commingling users’ funds with corporate assets. The regulator charged Kraken with simultaneously operating as an unregistered securities exchange, broker, dealer, and clearing agency since 2018. The SEC alleged that Kraken unlawfully facilitated the trading of crypto asset securities and made large profits while doing so.
Furthermore, the SEC argued that Kraken’s poor internal accounting systems put users’ funds at risk, leading to account deficiencies around their assets. Accounts holding customer assets were allegedly used by Kraken to handle operational expenses.
Disagreement and Settlement
Despite Kraken’s disagreement with the SEC’s claims and intention to defend itself, Powell believes the agency has returned to extort the crypto exchange following a $30 million settlement in February. Kraken paid the levy as a settlement for charges related to its staking-as-a-service product being an unregistered security. The product was later terminated.
“The masochists haven’t been happy with the beatings they’ve been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they’re back for seconds?” Powell said.
Powell Urges Crypto Firms to Leave the US
Powell further insisted that the SEC brought new charges because it knew a “real fight” would cost valuable time and more than $100 million. He urged crypto firms that cannot afford such issues with the SEC to get out of the “US warzone.” Kraken is not the only exchange facing charges, as Binance and Coinbase are also dealing with legal tussles with the SEC.
Hot Take
The SEC’s legal action against Kraken has sparked controversy within the crypto community, with debates on the agency’s intentions and its impact on the industry. Powell’s criticism has shed light on the challenges that crypto firms face when dealing with regulatory bodies, raising concerns about the future of crypto in the US.
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