Crypto exchange Kraken CEO Jesse Powell says US regulators “let the bad guys grow and explode because it serves their agenda.” The executive explained: “The bad guys operate with huge competitive advantages. They suck up users, revenue and venture capital that would otherwise have gone to the good guys.”
Kraken CEO Has a Theory About US Crypto Regulation
The CEO of cryptocurrency exchange Kraken, Jesse Powell, took to Twitter on Sunday to express his views on cryptocurrency regulation in the United States. The executive began:
I have a theory: Regulators let bad guys grow and explode because it serves their agenda.
Powell went on to name three goals that he believes regulators are trying to achieve. The first is to “destroy capital/resources in (the) crypto ecosystem,” he wrote. The second is to “burn people, (and) deter adoption,” he continued, adding that the third is to “give air cover to hit good actors.”
The Kraken boss stated that for regulators: “The bad guys are really on the side. The good guys are the enemy.” However, he emphasized: “If the bad guys can run long enough without exploding, they could kill the good guys for you.” Noting that the bad guys “can always be jailed later,” Powell warned:
The bad guys operate with huge competitive advantages. They suck up users, revenue and venture capital that would otherwise have gone to the good guys.
In another tweet, Powell commented on how regulators often seek more funding from Congress to regulate the cryptocurrency sector more effectively. “Funding is the obvious scapegoat. “If we had a bigger budget, we could have caught it.” The facts do not support it, but instead of imposing real consequences for failure, we reward them with higher budgets. The glory is in the response to disasters, so politicians manufacture disasters,” he opined.
Earlier this month, the US Securities and Exchange Commission (SEC) took action against Kraken for its staking program. The crypto exchange has reached a settlement with the SEC, shutting down its stake program for US clients, and agreeing to pay $30 million in repayment, pre-judgment interest, and civil penalties.
Powell also recently expressed his frustration regarding how regulators ignored his warning about illegal activity in the crypto space and then slapped his exchange with an enforcement action. Without specifically mentioning the crash of crypto exchange FTX, the Kraken boss tweeted on Friday:
I can’t tell you how infuriating it is to have flagged massive red flags and obviously illegal activity to regulators only to have them ignore the issues for years. They are at sea. It’s complicated. We are looking at everyone. DURING YEARS. So to be used as your example.
What do you think about Kraken CEO Jesse Powell’s theory about regulators in the US allowing bad guys to grow and then not adapting to their agenda? Let us know in the comments section.
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