Jesse Powell, co-founder of crypto exchange Kraken, has expressed strong criticism towards US regulators, accusing them of being masochistic and extorting crypto companies out of the country. Powell specifically targeted the Securities and Exchange Commission (SEC) for their actions.
Powell’s Disapproval of Regulators
On Tuesday, Powell took to Twitter to voice his frustrations, stating that “Decel” stands for “decelerationist,” a derogatory term used in certain communities to describe someone who aims to slow down technological progress. This statement came as the SEC sued Kraken once again, alleging that the exchange operates as an unregistered national securities exchange, broker, and clearing house. Kraken vehemently denied these claims and stated that it will vigorously defend its position.
The SEC’s complaint against Kraken states that, since September 2018, the exchange has unlawfully facilitated the buying and selling of crypto asset securities, leading the commission to seek injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains, interest, and penalties. It is worth noting that the SEC had previously settled with Kraken for $30 million in February, which adds an interesting layer to this ongoing legal battle.
Challenges Faced by Crypto Companies
Powell voiced his concerns over the SEC’s actions and criticized the regulators for failing to offer clear guidelines or solve any issues. He claimed that these fights are expensive, and the SEC knows it. Powell believes that those who cannot afford to fight back will be forced to shut down and leave the country.
Furthermore, Kraken argues that the SEC has made it challenging for crypto companies to register and comply with the unclear rules. The exchange emphasized that the regulator repeatedly urged crypto exchanges to come forward and register, yet it lacks sufficient legal support for its position. Kraken CEO David Ripley added that while the SEC has called for Kraken to register, there is no clear pathway to do so. He stated, “Its allegations are factually incorrect, contrary to law, and the wrong way to create policy in the United States. As an industry leader, we will stand up to these allegations and defend the crypto industry’s right to exist in the U.S.”
According to Kraken, as global crypto rule-making progresses, nonpartisan US Congressional action would be the most effective way to move forward and prevent the country from “litigating its way to the back of the line.”
