Welcome to the New Normal:
Over the past year, major crypto exchanges have faced federal investigations, raising questions about how they operate. However, Kraken co-founder Jesse Powell welcomed the recent Binance investigation as a step towards accountability and transparency in the industry.
Emphasizing Self-Policing:
Powell highlighted the importance of the crypto community self-policing to improve its reputation and avoid government crackdowns. He stressed the need for reliable, long-term-oriented services and showed support for Know Your Customer (KYC) requirements to legally onboard new users.
Challenges Facing Kraken:
Despite Kraken’s focus on the long game, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kraken for allegedly not registering as a securities exchange, broker, dealer, and clearing agency. The lawsuit argues that crypto assets are considered securities contracts under U.S. law.
Hot Take
The Binance investigation and legal action against Kraken signal a shift towards greater regulation and oversight in the crypto industry. It emphasizes the need for self-policing and regulatory compliance to build trust and credibility in the market.
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