Kraken co-founder Jess Powell called SEC “the main brake” after a lawsuit against the crypto exchange he co-founded and warned businesses about the need to “flee from the USA.”
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? https://t.co/SkfPJyneUz
— Jesse Powell (@jespow) November 21, 2023
The top manager did not mince words, demonstrating his indignation at “another attack on America.”
This is how Powell commented on the new SEC charges. The regulator intends to prohibit Kraken from acting as an exchange, broker, dealer or clearing agency without the appropriate license.
Powell saw the lawsuit as a signal to the Commission for Kraken and other crypto firms to leave the jurisdiction to avoid costly litigation.
In the new lawsuit, the Commission also drew attention to the statement of the platform’s independent auditor, who acknowledged a “significant risk of loss” of client funds.
The regulator listed a number of tokens that it considered unregistered investment contracts, including Algorand (ALGO), MATIC and NEAR. According to the lawsuit, Kraken was directly involved in the promotion of these assets.
The top manager complained about the lack of a clear mechanism for registering with the agency for participants in the crypto industry and condemned attempts at “the wrong way to formulate policy.”
Ripley pledged to support efforts to create regulatory transparency and noted Congress’ priority on this issue.
In March 2023, the FBI raided Powell’s home as part of a criminal investigation into allegations he hacked into a nonprofit he founded.
In the fall of 2022, he resigned from the position of CEO of the platform, taking the chair of the chairman of the board of directors.
Recall that SEC head Gary Gensler announced the possible prosecution of unregistered crypto exchanges back in May 2022. Previously, he had identified them as the main direction as part of tightening oversight of the industry.
Since March 2023, the department has initiated civil proceedings against Beaxy, Bittrex, Binance and Coinbase.
In September, Gensler said market intermediaries such as brokers, dealers or clearing agencies would be required to register with the Commission.
Source: Cryptocurrency
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