Kraken co-founder Jesse Powell has sharply criticized the U.S. Securities and Exchange Commission following new charges against the crypto exchange, highlighting ongoing tensions between the crypto industry and regulatory bodies.
In a recent escalation of the ongoing conflict between crypto exchange Kraken and the U.S. Securities and Exchange Commission (SEC), Kraken’s co-founder Jesse Powell has launched a fervent critique of the regulatory body.
Powell branding the SEC as the “USA’s top decel” and accusing it of hindering progress, underscores a deeper clash between the burgeoning crypto industry and traditional regulatory frameworks.
The SEC’s allegations against Kraken are substantial, claiming that the exchange has been functioning as an unregistered securities exchange, broker, dealer and clearing agency. Kraken has also been accused of co-mingling customer assets with company funds.
The charges pose serious questions about the integrity and operational practices within Kraken, following a $30 million fine paid by the company to settle prior SEC charges.
Powell’s response, while fierce, seems to reflect a broader sentiment in the crypto community about regulatory overreach. His assertion that the SEC’s actions are a form of extortion, with a potential legal battle costing upwards of $100 million, speaks to the perceived power imbalance between regulatory bodies and crypto entities.
While Powell’s frustration with the perceived regulatory “warzone” in the U.S. is understandable, the dismissal of regulatory concerns may not be in the best interest of protecting consumers and ensuring market integrity.
The SEC’s classification of cryptocurrencies like Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and Solana (SOL) as securities, for instance, touch on the complex and still-evolving discourse on how best to categorize and regulate digital assets.