Chair

Gary

<p>The post <a href="https://coinpedia.org/news/john-e-deaton-slams-secs-gary-gensler-after-krakens-30m-sec-settlement/" rel="noopener noreferrer nofollow">John E Deaton Slams SEC’s Gary Gensler after Kraken’s $30M SEC Settlement</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>CryptoLaw U.S. founder John E Deaton has sparked a storm with his savage comments directed at SEC Chair Gary Gensler in response to Kraken’s recent $30 million settlement with the SEC.&nbsp;</p>
<p>Deaton accuses Gensler of being a “despicable and dishonorable regulator” and criticizes the SEC’s aggressive stance. He further shed light on the internal struggles crypto firms face when dealing with regulatory pressure.</p>
<h2 class="wp-block-heading" id="h-sec-takes-down-kraken">SEC Takes Down Kraken</h2>
<p>The U.S. securities regulator <a href="https://coinpedia.org/news/sec-charges-kraken-exchange-for-unregistered-operations/" rel="noopener noreferrer nofollow">recently charged</a> Kraken, led by Jesse Powell, over its staking-as-a-service, alleging that the exchange failed to adequately warn customers about the associated risks.&nbsp;</p>
<p>Meanwhile, the program had promised returns between 4% and 21% without proper risk disclosure. In response, Kraken settled the case by agreeing to a $30 million fine and discontinuing its staking offer for U.S.-based customers.</p>
<p>Later Deaton <a href="https://twitter.com/JohnEDeaton1/status/1726817148322894036" rel="noopener noreferrer nofollow">took to X</a> to discuss the dynamics behind Kraken’s decision to settle, suggesting that the $30 million payment was an attempt to buy peace.&nbsp;</p>
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   <p lang="en" dir="ltr"><a href="https://twitter.com/GaryGensler?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@GaryGensler</a> is a despicable and dishonorable regulator. He knew that <a href="https://twitter.com/krakenfx?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@krakenfx</a> believed it was buying peace for the $30M. I know some people are critical of it’s choice to settle and pay the $30M. I wanted them to fight as well. But when you decide to fight, $30M takes you only… <a href="https://t.co/WeF4YTMfip" rel="noopener noreferrer nofollow">https://t.co/WeF4YTMfip</a></p>— John E Deaton (@JohnEDeaton1) <a href="https://twitter.com/JohnEDeaton1/status/1726817148322894036?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 21, 2023</a>
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<p>Deaton directly accused SEC Chair Gary Gensler of being a “despicable and dishonorable regulator,” bringing to the forefront the intricate challenges that crypto firms grapple with under mounting regulatory scrutiny.</p>
<p>He acknowledges the debate around choosing to settle versus fighting in court, pointing to Ripple and Brad Garlinghouse’s ongoing legal battle, which has cost over $150 million so far.</p>
<h2 class="wp-block-heading" id="h-sec-to-extort-more">SEC To Extort More</h2>
<p>Jesse Powell, the former CEO of Kraken, expressed concerns in a <a href="https://twitter.com/jespow/status/1726794688433369290" rel="noopener noreferrer nofollow">tweet</a> that the $30 million settlement with the SEC might offer only short-term relief, hinting at the possibility of the SEC returning for more.<br><br>However, Powell further said that Lawyers could have done a lot with $30m, but the SEC is aware of the financial strain that a legal battle will likely cost more than $100m, and valuable time, that’s why they pushing them to settle.<br><br>Although he is giving a clear message that if your crypto company can’t bear the financial and regulatory challenges of a prolonged legal dispute, it might be prudent to consider relocating from the complex regulatory landscape of the United States.</p>

John E Deaton Slams SEC’s Gary Gensler after Kraken’s $30M SEC Settlement

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