The Security and Exchange Commission (SEC) once again hit at cryptocurrency exchange Kraken amid market recovery. Following the SEC’s action, Kraken co-founder Jesse Powell criticized the SEC after they sued the cryptocurrency exchange for alleged securities law violations on November 20, 2023.
SEC targets Kraken amid market recovery
In a recent post on X (formerly Twitter) on November 21, 2023, Powell referred to the SEC as the “USA’s top decel,” a term in tech circles used to insult someone delaying progress. Along with this he also claimed that the SEC was not content with the $30 million settlement Kraken had previously paid in February.
An hour after his criticism of the SEC, Powell took to X again to issue a warning to other cryptocurrency exchanges, urging them to take the SEC’s message seriously. He advised other crypto businesses to avoid legal battles with the SEC by considering leaving the “US warzone.” Powell stated,
“$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’t afford it, get your crypto company out of the US warzone.”
SEC charges against Kraken and previous actions against exchanges
Earlier, the SEC charged Kraken for failing to register their sale of the crypto asset staking services program. In the settlement with the SEC, Kraken agreed to pay a massive $30 million and pause its crypto staking program for U.S. customers.
This is not the first time the SEC has sued a cryptocurrency exchange; earlier, Coinbase and Binance were also targeted by the SEC. The SEC, perceived by institutions and firms as hindering the growth of the rapidly evolving cryptocurrency industry, may be making these strides for investors’ safety. Countries like the U.K., Hong Kong, and many other countries are taking benefits from these problems as they are facing in the U.S.