The CEO of Kraken, Jesse Powell, voiced his disapproval of US regulators in a recent statement. He claimed that due to their lenient approach to enforcement, malicious actors have been given the opportunity to take advantage of users and venture capital without consequence. This misconduct has cost consumers and businesses millions in losses for years now–a reality that is unacceptable, according to Powell.
Kraken CEO Jesse Powell Alleged U.S. Regulators Turn Ahead On Malicious Persons
Jesse Powell declared on Twitter that US regulators tolerate the activities of unprincipled entities for their own gain. As per the Kraken CEO, regulators anticipate crippling the industry by permitting users to acquire benefits from it. “The nefarious players are actually allowed in this game; meanwhile, those who strive to uphold ethical values become targeted instead. If these bad actors manage to limp along until they implode, then ultimately, you’ll be able to take out your opposition.”
Following Kraken’s settlement with the SEC in which they agreed to pay a $30 million penalty while terminating staking services for US customers, Powell expressed his thoughts on the event. Many from within crypto have voiced disapproval of this episode, deeming it as “regulating through practice” and claiming that the SEC is applying pressure to celebrities who promote projects via social media platforms.
US Regulator SEC Decided to Discontinue Stablecoin Issuer Paxos
In September 2022, Jesse Powell declared relinquishing his position as CEO of Kraken to Dave Ripley, its COO. The SEC they recently challenged Paxos’ issuance of BUSD, which led them to face a potential sanction and halt production of this currency altogether. In response to the situation, Changpeng Zhao –Binance’s own CEO– declared that they have been assured by Paxos that their reserves for BUSD are backed one-to-one with real money from established financial institutions.
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