{"id":87320,"date":"2023-11-21T15:40:23","date_gmt":"2023-11-21T13:40:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87320"},"modified":"2025-09-13T11:04:07","modified_gmt":"2025-09-13T08:04:07","slug":"jesse-powell-criticises-sec-after-kraken-lawsuit","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jesse-powell-criticises-sec-after-kraken-lawsuit\/","title":{"rendered":"Jesse Powell criticises SEC after Kraken lawsuit"},"content":{"rendered":"<p>Kraken co-founder Jesse Powell called the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> \u201cthe main brake\u201d after the suit against the exchange he co-founded and warned businesses to \u201cflee the United States\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">USA&#8217;s top decel is back with another assault on America. The masochists haven&#8217;t been happy with the beatings they&#8217;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&#8217;re back for seconds? <a href=\"https:\/\/t.co\/SkfPJyneUz\">https:\/\/t.co\/SkfPJyneUz<\/a><\/p>\n<p>\u2014 Jesse Powell (@jespow) <a href=\"https:\/\/twitter.com\/jespow\/status\/1726791124650713134?ref_src=twsrc%5Etfw\">November 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The executive did not mince words, venting anger at \u201canother assault on America\u201d.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cMasochists are unhappy with the beatings they<\/em><a href=\"https:\/\/u1f987.com\/en\/news\/partial-victory-details-and-implications-of-the-secs-ripple-case\"><em> were subjected to in New York<\/em><\/a><em>, and want to get a new counter in California. I thought we had settled<\/em><a href=\"https:\/\/u1f987.com\/en\/news\/kraken-to-pay-30-million-to-settle-sec-charges\"><em> all the problems for $30m<\/em><\/a><em> in February [about a<\/em><em> \u201cunregistered\u201d staking<\/em><a href=\"https:\/\/u1f987.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\"><em> <\/em><em>program<\/em><\/a><em>]<\/em><em>,\u201d<\/em> \u2014 he wrote.<\/p>\n<\/blockquote>\n<p>Powell commented on<a href=\"https:\/\/u1f987.com\/en\/news\/sec-sues-kraken-over-lack-of-registration\"><em> the SEC&#8217;s new charges<\/em><\/a>. The regulator intends to obtain a ban on Kraken from operating as an exchange, broker, dealer or clearinghouse without the requisite license.<\/p>\n<p>Powell saw in the suit a signal to Kraken and other crypto firms to exit the jurisdiction to avoid costly litigation.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cFor $30m you get about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with that sum, but the agency knows that a real fight will likely cost more than $100m and will take precious time. If you can&#8217;t afford it, leave the \u2018combat zone\u2019 in the United States,\u201d<\/em> he emphasised.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Message is clear: $30m buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30m but the SEC knows that a real fight will likely cost $100m+, and valuable time. If you can&#8217;t afford it, get your crypto company out of the US warzone.<\/p>\n<p>\u2014 Jesse Powell (@jespow) <a href=\"https:\/\/twitter.com\/jespow\/status\/1726794688433369290?ref_src=twsrc%5Etfw\">November 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the new suit, the Commission also drew attention to the platform&#8217;s independent auditor&#8217;s statement, which acknowledged a \u201csignificant risk of losses\u201d of customer funds.<\/p>\n<p>The regulator added to the list a number of tokens he deemed unregistered investment contracts, including Algorand (ALGO), MATIC and NEAR. According to the suit, Kraken was directly involved in promoting these assets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe strongly disagree with the SEC&#8217;s allegations, and firmly believe that we do not list securities in our listings and will defend our position,\u201d<\/em> said Kraken chief David Ripley.<\/p>\n<\/blockquote>\n<p>The executive lamented the absence of a clear registration mechanism at the agency for crypto-industry participants and condemned attempts at \u201can improper way of policymaking.\u201d <\/p>\n<p>Ripley pledged to support efforts to create regulatory transparency and noted Congress&#8217;s priority on the matter.<\/p>\n<p>In March 2023 the FBI conducted a search of Powell&#8217;s home as part of a criminal investigation into allegations of hacking the nonprofit he founded.<\/p>\n<p>In autumn 2022 he stepped down as CEO of the platform, becoming chairman of the board.<\/p>\n<p>Earlier in May 2022, SEC chair Gary Gensler signalled<a href=\"https:\/\/u1f987.com\/en\/news\/sec-chief-signals-possible-enforcement-action-against-unregistered-crypto-exchanges\"> possible enforcement<\/a> against unregistered crypto exchanges. He had previously<a href=\"https:\/\/u1f987.com\/en\/news\/sec-pledges-tougher-oversight-of-bitcoin-exchanges\"> identified<\/a> them as a primary focus in tightening oversight of the industry.<\/p>\n<p>Since March 2023 the agency has initiated civil proceedings against<a href=\"https:\/\/u1f987.com\/en\/news\/sec-brings-charges-against-beaxy-crypto-exchange-and-its-executives\"> Beaxy<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/bittrex-to-pay-24-million-to-settle-sec-claims\">Bittrex<\/a>,<a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-binance-and-changpeng-zhao\"> Binance<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-coinbase-exchange\">Coinbase<\/a>.<\/p>\n<p>In September, Gensler said that intermediaries operating in the market such as brokers, dealers or clearinghouses<a href=\"https:\/\/u1f987.com\/en\/news\/gensler-backs-secs-push-to-regulate-the-bitcoin-industry\"> require registration with the Commission<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jesse Powell called the U.S. Securities and Exchange Commission &#8216;the main brake&#8217; after the suit against the Kraken-founded exchange and warned businesses to &#8216;flee the United States&#8217;.<\/p>\n","protected":false},"author":1,"featured_media":87321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,193,36],"class_list":["post-87320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-kraken","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=87320"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87320\/revisions"}],"predecessor-version":[{"id":87322,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87320\/revisions\/87322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/87321"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=87320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=87320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=87320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}