Key Points: Kraken’s co-founder and ex-CEO, Jesse Powell, tweeted about the decision of his company to cease offering staking services in America.
Powell stated that Kraken decided not to sue the SEC because of “risk adjusted return,” suggesting that litigation would not justify the cost of a unlikely win.
Hester Peirce, the SEC commissioner, also received a reply from Powell. She yesterday criticised her agency for failing to set out a compliance pathway for Kraken and other cryptocurrency companies.
Jesse Powell, cofounder and former CEO at Kraken, tweeted about Kraken’s decision to cease providing staking services in America. Yesterday Kraken and the U.S Securities and Exchange Commission reached an agreement that required Kraken pay $30 million and to cease providing staking service to American customers. According to some allegations, Kraken’s offering of securities through its staking services was a selling of securities. Powell made a statement today. He stated:
“I hope somebody proves in court that there is a legal, user friendly version of custodial stake that can be offered US consumers… It’ll be a brutal and lengthy fight… but the USA and the industry will be extremely grateful.”
Powell said that Kraken did not take the SEC to court due to “risk-adjusted returns,” suggesting that other businesses might be able to defend themselves. He also stated that the SEC targeted Kraken during a bearish market and waited for 30% of its employees to fire before it took action. Powell added that they have all our financial information. “Perhaps, we appeared frail,” Powell said in defense of Paul Grewal (chief legal officer at Coinbase). Grewal is trying to explain how Coinbase’s Staking Service is different from Kraken at this time. This is probably to avoid possible SEC action.
“The ‘This is wrong, but I won’t show you how to do it right. You want to know if X works. It is not a good idea to try it. We don’t oppose regulation, but we need a clear way to operate.”
Powell agreed with statements made by Tom Emmer, a prominent pro-crypto legislator who criticized the SEC’s “purgatory” strategy. Powell wrote:
“Congress must protect the domestic crypto industry, and US consumers who will now be traveling offshore to obtain services that are no longer available in the US.”
Emmer also warned about staking-related opportunities going offshore. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: hester peirceJesse PowellKrakenSEC Settlement