US Senator Cynthia Lummis Criticizes SEC Lawsuit Against Kraken
Senator Lummis, a pro-crypto lawmaker, criticized the SEC for suing Kraken for operating as an unregistered securities exchange, broker, dealer, and clearing agency. The lawsuit came after a lengthy investigation and reports of the exchange being under the SEC’s watch.
Ruling By Enforcement
Lummis stated that the SEC cannot continue ruling by enforcement, saying that repeated attempts by crypto asset companies to get guidance from the SEC only resulted in enforcement actions. She called for clear guidance from Congress to define which assets qualify as securities and commodities.
Lengthy Probe On Kraken
The SEC began investigating Kraken in February 2023 for offering unregistered securities. The complaint alleged that the exchange made hundreds of millions of dollars in crypto trading unlawfully. Kraken has a history of settling with the SEC, having agreed to close its crypto staking service and pay $30 million in penalties in February 2023.
Hot Take
Senator Lummis’ criticism of the SEC lawsuit against Kraken highlights the ongoing uncertainty and lack of clear regulation in the cryptocurrency industry. The call for clear guidance from Congress and the SEC to define the classification of assets is indicative of the need for regulatory clarity to drive industry growth and consumer protection.
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