Kraken CEO Jesse Powell Comments on Staking, SEC Settlement
• Kraken reached a $30 million settlement with the SEC to cease staking services for U.S. clients, which allegedly constituted a securities offering.
• Jesse Powell, co-founder and exiting CEO of Kraken, commented on the decision in a series of tweets, noting that the SEC targeted them during a bear market when they had recently laid off 30% of their staff.
• Powell expressed hope that someone can prove in court that custodial staking can be legally offered in the US and called for regulatory clarity from the SEC.
Kraken Settles With SEC
Kraken recently reached a settlement with the U.S. Securities and Exchange Commission (SEC) to pay $30 million and discontinue its staking services for U.S.-based customers, which allegedly constituted a securities offering.
Jesse Powell Comments
Jesse Powell, co-founder and exiting CEO of Kraken, commented on his company’s decision to halt its U.S. staking services in a series of tweets on Feb 9th 2021. He explained why Kraken did not fight the SEC due to risk-adjusted return and noted that other companies may have more resources available to them in this kind of situation but that the SEC targeted Kraken during a bear market when they had just laid off 30% of their staff, giving them leverage over Kraken financially as well as legally. He also expressed hope for legal custodial staking being offered in the US and called for regulatory clarity from the SEC .
Powell Responds To Officials & Lawmakers
Powell replied to comments from SEC commissioner Hester Peirce who criticized her agency’s lack of compliance path available to crypto companies like Kraken yesterday , asking for guidance rather than an ‘try it and see what happens’ approach as he believes this does not help either industry or consumers; noting that they are not anti-regulation but need clear paths to operate legitimately within their jurisdictions . He also agreed with statements made by Congress member Tom Emmer , an advocate for embracing crypto technology rather than rejecting it through heavy regulations .
In conclusion, while there is still no clear path forward regarding regulatory compliance within crypto industries , Jesse Powel l has voiced his opinion about this matter along with some other officials & lawmakers who are trying to make progress towards setting clearer guidelines & paths forward .