The CEO of crypto exchange Kraken, Jesse Powell, has called on Congress to pass legislation to protect the US crypto industry after the Securities and Exchange Commission (SEC) took action against his trading platform for its service of crypto betting
Kraken CEO Responds to SEC Action
Kraken CEO Jesse Powell urged Congress to pass a law to protect the domestic crypto industry on Thursday after the US Securities and Exchange Commission (SEC).
The Kraken boss tweeted:
Congress must act to protect the domestic crypto industry and US consumers who will now go abroad for services no longer available in the US.
As part of the settlement With the securities regulator, Kraken has agreed to end its cryptocurrency staking program for US clients and pay $30 million in repayment, pre-judgment interest, and civil penalties.
kraken cleared up In a blog post on Thursday:
Participation services for customers outside of the US will continue without interruption. Non-US customers can continue to wager and remove assets, as well as earn and wager rewards automatically, as usual.
Following the securities watchdog’s enforcement action on the Kraken staking program, SEC Commissioner Hester Peirce issued a statement disagree and disagree with your agency’s action. “A lazy, paternalistic regulator settles on a solution like this deal: don’t start a public process to develop a viable registration process that provides valuable information to investors, just shut it down,” he wrote.
In response to Commissioner Peirce’s statement, Powell tweeted: “Some guidance would be appreciated.” He added that the SEC’s approach of “This is wrong, but I won’t tell you how to get it right. Do you want to know if X works? Try it and see what happens” does not help the cryptocurrency industry or consumers. “We are not against regulation, but we need a clear path to operate,” he emphasized.
In a follow-up tweet, the Kraken executive opined:
I sincerely hope someone proves, in court, that there is a user-friendly, legal version of escrow participation that can be offered to American consumers. It will be a brutal, long, expensive fight and a huge distraction, but the industry and the US will be extremely grateful.
What do you think about the SEC going after cryptocurrency staking programs on exchanges? Let us know in the comments section.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
