SEC Accused of Overreach in Kraken Case

The Securities and Exchange Commission (SEC) faces criticism from Kraken’s CEO, who labels it America’s “top decel.”

Kraken, accused of operating as an unregistered national securities exchange, broker, and clearing house, vehemently disputes the claims.

The SEC contends that Kraken unlawfully profited “hundreds of millions” by selling crypto tokens deemed securities without providing adequate investor protections.

The commission also highlights Kraken’s “deficient” business practices, exposing users to various risks due to poor internal controls.

Kraken’s former CEO, Jesse Powell, denounces the SEC’s complaint as “another attack on America.”

In a heated response on X (formerly Twitter), Powell criticizes the SEC, earning the commission his personal label of “USA’s top decel.”

Powell warns smaller crypto firms to exit the US before facing SEC scrutiny, emphasising the high costs and time involved in a legal battle.

Kraken, having settled with the SEC before for $30 million, believes the commission fails to offer a “clear path to registration” and calls on Congress for regulatory clarity.

Kraken’s repeated run-ins with the SEC, including a previous settlement, raise questions about the commission’s understanding of the crypto sector.

The CEO’s advice to smaller firms to leave the US to avoid legal battles underscores the pressing need for comprehensive crypto regulations that encourage innovation instead of hindering it.

The SEC’s approach of “regulation by enforcement” is criticized by Kraken, who believes it harms consumers, stifles innovation, and damages US competitiveness globally.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.