Crypto Exchange Kraken Faces Industry Challenges
Kraken’s co-founder Jesse Powell recently discussed the challenges faced by the crypto industry. Powell mentioned that the industry is experiencing new threats, but that Kraken remains committed to playing the long game.
He referred to the recent settlement between the U.S. Department of Justice and Binance, noting that the situation “feels a bit more fair today.” His comments come amidst fresh lawsuits and enforcement actions against crypto exchanges, including Kraken itself.
In his statement, Powell expressed concerns about the industry’s reputation and the lack of timely protection, emphasizing the need for self-policing within the industry.
He also suggested that the SEC tends to target companies like Kraken and Coinbase, describing them as “easy targets” while ignoring more egregious offenders offshore.
Ongoing Regulatory Dispute
Earlier this year, the SEC charged Kraken’s parent companies with failing to register the offer and sale of its crypto asset staking-as-a-service program. The parent entities settled the charges by paying $30 million in penalties.
Powell criticized the SEC’s actions, arguing that the settlement merely buys time before the regulator returns for more. Kraken has responded to the allegations, asserting that the way the SEC views its products is legally and factually incorrect.
Hot Take: Kraken’s Stance on Regulatory Challenges
Kraken’s co-founder Jesse Powell highlighted the ongoing challenges facing the crypto industry, emphasizing the need for self-policing and the industry’s commitment to playing the long game, despite recent legal and regulatory challenges. The company is standing firm in the face of regulatory scrutiny and continues to advocate for a fair and consistent approach to cryptocurrency regulation.
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