The legal lawsuit against crypto exchange Kraken, filed by the US Securities and Exchange Commission (SEC) has become more intricate. At the same time, the SEC’s enforcement faces opposition from crypto communities, prominent figures and members of Congress.
Following Binance and Coinbase, crypto giant Kraken has been thrust into the latest legal battle. In response, Kraken has issued a resolute statement, firmly asserting that no securities have been listed on its exchange. The company has also vowed to defend its position vigorously in court.
Kraken’s Executives: It’s Time to Leave the Market
The SEC came under fierce criticism for its enforcement. Kraken CEO David Ripley and co-founder Jesse Powell expressed disagreement with the accusations. Ripley argued that the SEC made false claims about the company’s operations and its approach to regulating crypto is counterproductive. Meanwhile, Powell also voiced his disapproval of the SEC’s actions, believing they stifle the industry’s growth.
Powell believes that the SEC is exploiting its authority to extract money from cryptocurrency companies, and that those unable to withstand the SEC’s legal battles should consider leaving the United States. Coinbase CEO Brian Armstrong expressed similar frustration with the SEC’s approach to regulating crypto, stating that Coinbase is looking at other jurisdictions with more favorable regulatory environments.
Co-founder of Gemini Cameron Winklevoss expects that Kraken and Coinbase would continue to challenge the SEC in court and achieve favorable outcomes.
Congress Members Support Kraken
Not only crypto members, Kraken also received support from U.S. Congress members, including Senator Cynthia Lummis and Warren Davidson. In her disapproval of the SEC’s actions, Lummis called for the Congress’ establishment of a clear legal framework.
Meanwhile, Davidson suggested the SEC Stabilization Act to remove the SEC chairman. Kraken stated that it supports Congressional action to create clear registration and oversight frameworks for centralized crypto trading platforms in the United States.
The company believes that Congressional action by elected lawmakers is necessary to establish a clear and fair regulatory framework for these platforms while ensuring that the nation remains at the forefront of the burgeoning crypto and Web3 landscape. Kraken said that it has consistently worked to ensure that U.S. consumers can safely access digital asset technology.
Hot Take: Kraken’s Battle with the SEC
The legal battle between Kraken and the SEC highlights the tensions and challenges crypto exchanges face in the US regulatory environment. The SEC’s enforcement actions have drawn sharp criticism from industry leaders, leading to renewed calls for a clear and fair regulatory framework for crypto trading platforms in the US.
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