Jesse Powell, Kraken CEO, Says Regulators Support the Bad Guys In Crypto
Kraken, a crypto exchange, settled for $30 million with the SEC earlier this month. It was forced to close down its crypto staking function after the crackdown.
Jesse Powell, Kraken CEO, has lashed out at regulators once more, pointing out that they have been supporting bad crypto guys while treating the good guys like enemies. He wrote, “Regulators allow the bad guys to get big and blow it up because they want their agenda.”
Powell explained the sequence in which bad guys’ blowups result in massive capital/resource loss within the crypto ecosystem. This causes investors to lose their money and discourages adoptions. It gives regulators “air cover” to attack good actors. Powell wrote this tweet:
The bad guys are actually on your side. The enemy is the good guys. If they can run for long enough without getting blown up, they might just be able to kill the good guys. Bad guys have huge competitive advantages. They steal revenue, users, and venture capital that could have been used to help the good guys. BG can always be sent to prison.
Kraken CEO stated that regulators have been failing to heed warnings about fraud and scams. Powell’s views were also shared by Caitlin Long, CEO of Custodian Bank.
Hester Pierce, a crypto-friendly SEC Commissioner, also stated that the market’s failure to shut down Kraken’s staking service by the SEC sets a bad precedent.
Gemini Chief Echoes Kraken CEO’s Comments
Popular figures in the crypto space have been pointing out the lack of clarity in regulatory matters in the US and West. This has been the main reason for the downturn among crypto firms operating within the region. Cameron Winklevoss, CEO of Gemini exchange, has echoed Jesse Powell’s comments.
He tweeted that the West would lose the game to East, and that the East will be the starting point for the next bull run. Cameron stated that it would be a humiliating reminder to the West, especially the US that crypto cannot be stopped. He said:
Any government that does not offer clear rules and honest guidance will be left behind. Quickly. This will result in missing the best period of growth since the advent of the internet commercial.
Cameron Winklevoss stated that the West may miss out on the foundational part for the future global financial infrastructure.
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