Deaton Calls Out SEC Chair Gensler
John E. Deaton, founder of CryptoLaw U.S., has stirred controversy with his scathing remarks aimed at SEC Chair Gary Gensler following Kraken’s $30 million settlement with the SEC. Deaton criticizes Gensler and the SEC’s aggressive approach, shedding light on the internal struggles crypto firms face under regulatory pressure.
SEC Takes Down Kraken
The U.S. securities regulator charged Kraken, led by Jesse Powell, over its staking-as-a-service, alleging failure to adequately warn customers about associated risks. Kraken settled the case with a $30 million fine and discontinuing its staking offer for U.S. customers.
Deaton took to Twitter to discuss Kraken’s decision to settle, suggesting the $30 million payment was an attempt to buy peace.
Deaton accused SEC Chair Gary Gensler of being a “despicable and dishonorable regulator,” highlighting the challenges crypto firms grapple with under mounting regulatory scrutiny. He acknowledges the debate around settling versus fighting in court, citing Ripple’s legal battle, which has cost over $150 million.
SEC To Extort More
Jesse Powell expressed concerns that the $30 million settlement might offer only short-term relief, hinting at the possibility of the SEC returning for more. He also indicated that the financial strain of a legal battle could cost more than $100 million and valuable time, suggesting that relocating from the U.S. regulatory landscape might be prudent for crypto firms.
Hot Take
The intense debate surrounding the SEC’s actions and the response from crypto firms highlights the complex and high-stakes nature of the regulatory environment. It raises important questions about the financial and operational burden placed on these firms and the considerations they must make in navigating the U.S. regulatory landscape.
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