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“Regulators Make Bad Boys Big” – Kraken CEO Speaks Out After SEC Settlement

“Regulators Make Bad Boys Big” – Kraken CEO Speaks Out After SEC Settlement

#Regulators #Bad #Boys #Big #Kraken #CEO #Speaks #SEC #Settlement Welcome to InNewCL, here is the new story we have for you today:

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Jesse Powell, the current CEO of crypto exchange Kraken, has called on US financial regulators to “let the bad guys win” in order to fit their agenda.

In a Feb. 19 Twitter thread, Powell said speculated that U.S. regulators — apparently including the Securities and Exchange Commission (SEC) — have allowed crypto firms to operate without enforcement action as a red herring on companies that are their true targets. Per the Kraken CEO, allowing bad actors to “suck up users, revenue and venture capital” that is available to companies operating in compliance with the regulations could effectively destroy the industry – by allowing competition to run over each other and regulators later put violators in jail.

“The bad guys are actually on the side,” Powell said. “The good guys are the enemy. If the bad guys can run long enough without blowing up, they might just kill the good guys for you.”

I have a theory:
The regulators let the bad guys grow up and blow up because it serves their agenda.

1. Destroy capital/resources in the crypto ecosystem
2. Burn people, prevent adoption
3. Provide air cover to attack good actors

The villains are actually on the side. Good guys are the enemy.

— Jesse Powell (@jespow) February 19, 2023

Powell’s statement followed Kraken reaching a settlement with the SEC, in which the crypto firm agreed to stop offering any staking service or program to U.S. customers and pay $30 million in levy, prejudice interest, and civil penalties. Many in the crypto space have criticized the SEC’s actions as yet another example of “regulation by enforcement” – a criticism that extends to the regulator cracking down on celebrities endorsing tokens via social media channels.

Related: SEC chairman warns crypto firms after Kraken staking actions

In September 2022, Powell announced that Kraken’s Chief Operating Officer, Dave Ripley, would succeed him as CEO. After that, he will stay with the crypto company as CEO. Paxos also reportedly faced enforcement action from the SEC over alleged violations of investor protection laws in its dealings with Binance USD (BUSD) stablecoins.

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