Kraken Co-Founder Jesse Powell Denounces SEC as "Top Decel," Urges Crypto Firms to Leave the US

In a scathing rebuke of the United States Securities and Exchange Commission (SEC), Kraken co-founder Jesse Powell labeled the agency as the "USA's top decel" and urged crypto companies to abandon the "US warzone" to avoid costly legal disputes.

Powell's fiery remarks came in response to the SEC's recent lawsuit against Kraken, alleging violations of securities laws. This latest legal action follows Kraken's $30 million settlement in February to resolve previous claims that it offered unregistered securities through its staking services.

Accusing the SEC of being insatiable with its enforcement actions, Powell asserted that the $30 million settlement only buys crypto firms "about 10 months before the SEC comes around to extort you again."

Advising crypto companies to relocate outside of the US to escape the SEC's regulatory onslaught, Powell declared, "If you can't afford it, get your crypto company out of the US warzone."

The SEC's lawsuit alleges that Kraken failed to register as a securities broker and improperly commingled customer funds. Kraken maintains that it did not list unregistered securities and that the commingling claims relate to earned fees, not missing user funds.

Nevertheless, Powell's incendiary remarks underscore the escalating tensions between crypto firms and regulators like the SEC. His call for a crypto exodus raises concerns that the US's strict regulatory climate could stifle innovation and drive the industry overseas.

As the crypto landscape continues to evolve, the coming months are likely to witness intensified clashes between innovators like Kraken and regulators, potentially determining the future accessibility of cryptocurrencies for US citizens.

Key Takeaways:

  • Kraken co-founder Jesse Powell has vehemently criticized the SEC, labeling it the "USA's top decel" and urging crypto firms to depart from the US to avoid legal battles.
  • Powell's remarks stem from the SEC's recent lawsuit against Kraken, alleging securities law violations.
  • Despite settling previous SEC claims for $30 million, Powell believes the SEC's appetite for enforcement is insatiable.
  • Powell advises crypto companies to relocate outside the US, describing it as a "warzone" for crypto businesses.
  • The SEC's lawsuit alleges that Kraken failed to register as a securities broker and commingled customer funds.
  • Kraken denies the SEC's allegations, maintaining that it did not list unregistered securities and that the commingling claims relate to earned fees.
  • Powell's comments highlight the intensifying tensions between crypto firms and regulators like the SEC.
  • The future accessibility of cryptocurrencies for US citizens may hinge on the outcome of the ongoing clashes between regulators and crypto innovators.
Author: Denis Tabyrtsa

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