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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 <a href="https://www.sec.gov/news/press-release/2023-237" data-type="link" data-id="https://www.sec.gov/news/press-release/2023-237" target="_blank" rel="noopener noreferrer nofollow">ongoing conflict</a> between crypto exchange Kraken and the U.S. Securities and Exchange Commission (SEC), Kraken’s co-founder Jesse Powell has <a href="https://twitter.com/jespow/status/1726791124650713134?s=20" data-type="link" data-id="https://www.sec.gov/news/press-release/2023-237" target="_blank" rel="noopener noreferrer nofollow">launched</a> 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.
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 USA's top decel is back with another assault on America. The masochists haven't been happy with the beatings they've been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they're back for seconds? <a href="https://t.co/SkfPJyneUz" target="_blank" rel="noopener noreferrer nofollow">https://t.co/SkfPJyneUz</a>— Jesse Powell (@jespow) <a href="https://twitter.com/jespow/status/1726791124650713134?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 21, 2023</a>
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The SEC’s allegations against Kraken are substantial, claiming that the exchange has been functioning as an <a href="https://crypto.news/sec-charges-impact-theory-over-unregistered-nft-securities-offering/" data-type="link" data-id="https://crypto.news/sec-charges-impact-theory-over-unregistered-nft-securities-offering/" rel="noopener noreferrer nofollow">unregistered securities</a> exchange, broker, dealer and clearing agency. Kraken has also been accused of co-mingling customer assets with company funds.
You might also like: <a href="https://crypto.news/kraken-to-launch-stock-and-etfs-trading-platform-in-2024/" rel="noopener noreferrer nofollow"> Kraken to launch stock and ETFs trading platform in 2024 </a>
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 (<a href="https://crypto.news/price/cardano/" data-type="link" data-id="https://crypto.news/price/cardano/" rel="noopener noreferrer nofollow">ADA</a>), Algorand (<a href="https://crypto.news/price/algorand/" data-type="link" data-id="https://crypto.news/price/algorand/" rel="noopener noreferrer nofollow">ALGO</a>), Cosmos (<a href="https://crypto.news/price/cosmos-hub/" data-type="link" data-id="https://crypto.news/price/cosmos-hub/" rel="noopener noreferrer nofollow">ATOM</a>), and Solana (<a href="https://crypto.news/price/solana/" data-type="link" data-id="https://crypto.news/price/solana/" rel="noopener noreferrer nofollow">SOL</a>) as securities, for instance, touch on the complex and still-evolving discourse on how best to categorize and regulate digital assets.
Read more: <a href="https://crypto.news/kraken-continues-bank-launch-plans-amid-regulatory-hurdles/" rel="noopener noreferrer nofollow"> Kraken continues bank launch plans amid regulatory hurdles </a>

Kraken co-founder labels SEC as USA’s chief obstacle

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