- The SEC alleges Kraken for violating the federal securities law, facilitating illegal trade of securities.
- Kraken CEO Dave Ripley strongly disagreed with the allegations, defending that Kraken does not list securities.
- The crypto exchange co-founder Jesse Powell criticized the SEC, addressing them as masochists.
The U.S. Securities and Exchange Commission (SEC) sued the cryptocurrency exchange Kraken, alleging violation of the federal securities law. In response to the allegations, Kraken Co-Founder Jesse Powell condemned the SEC, characterizing their actions as another “assault on America.”
On November 20, the SEC charged Kraken for allegedly operating the crypto platform as “an unregistered securities exchange, broker, dealer, and clearing agency.” As per the accusations, the company had been facilitating illegal trade of crypto asset securities since 2018.
Subsequently, the company came forward, expressing its strong disagreement with the regulator’s claims. Combating the SEC’s charges, Powell slammed the regulators, addressing them as “masochists.”
Meanwhile, Dave Ripley, the CEO of Kraken, defended that the company does not list securities. Ripley criticized the SEC’s allegations as “factually incorrect, contrary to law, and the wrong way to create policy in the United States.” The CEO contended that the company would move forward to “defend the crypto industry’s right to exist in the U.S.”
Furthermore, Ripley reiterated the role of Congress in implementing comprehensive crypto regulatory rules in the U.S. He believes that Congress’ involvement could bring clarity and certainty to the country’s “chaotic environment.”
Previously, Ryan Selkis, the founder and CEO of the intelligence platform Messari, made a similar statement that aligns with Ripley’s beliefs. Selkis’s tweet suggested that Americans long for a day when Congress would ban the “tyrannical government” from seizing the citizen’s crypto holdings.
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