{"id":21106,"date":"2023-02-20T10:26:21","date_gmt":"2023-02-20T18:26:21","guid":{"rendered":"https:\/\/coinnetworknews.com\/regulators-let-the-bad-guys-get-big-kraken-ceo-speaks-out-after-sec-settlement\/"},"modified":"2023-02-20T10:26:21","modified_gmt":"2023-02-20T18:26:21","slug":"regulators-let-the-bad-guys-get-big-kraken-ceo-speaks-out-after-sec-settlement","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/regulators-let-the-bad-guys-get-big-kraken-ceo-speaks-out-after-sec-settlement\/","title":{"rendered":"\u2018Regulators let the bad guys get big\u2019 \u2014 Kraken CEO speaks out after SEC settlement"},"content":{"rendered":"

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Jesse Powell, CEO of crypto exchange Kraken, has called out United States financial regulators for letting \u201cthe bad guys\u201d win to suit their agenda.<\/p>\n

In a Feb. 19 Twitter thread, Powell speculated<\/a> that U.S. regulators \u2014 seemingly including the Securities and Exchange Commission \u2014 were allowing crypto firms to operate without enforcement actions as a red herring for companies that are their true targets. According to the Kraken CEO, allowing bad actors to \u201csuck up users, revenue and venture capital\u201d available to firms operating in accordance with regulations could effectively destroy the industry \u2014 letting competition run over each other and having regulators jail violators later.<\/p>\n

\u201cThe bad guys are actually on-side,\u201d said Powell. \u201cGood guys are the enemy. If the bad guys can run long enough without blowing up, they might just kill the good guys for you.\u201d<\/p>\n

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I have a theory:
Regulators let the bad guys get big and blow up because it serves their agenda.<\/p>\n

1. destroy capital\/resources in crypto ecosystem
2. burn people, deter adoption
3. give air cover to attack good actors<\/p>\n

The bad guys are actually on-side. Good guys are the enemy. https:\/\/t.co\/DZI2O8gVyO<\/a><\/p>\n

\u2014 Jesse Powell (@jespow) February 19, 2023<\/a><\/p><\/blockquote>\n

Powell\u2019s statement followed Kraken reaching an agreement with the SEC<\/a>,\u00a0in which the crypto firm agreed to stop offering staking services or programs to U.S. clients and pay $30 million in disgorgement, prejudgement interest and civil penalties. Many in the crypto space have criticized the SEC\u2019s actions<\/a> as another example of \u201cregulation by enforcement\u201d \u2014 a criticism extended to the regulator cracking down on celebrities<\/a> endorsing tokens through social media channels. <\/p>\n

Related: <\/em><\/strong>SEC chair issues warning to crypto firms after action on Kraken staking<\/em><\/strong><\/a><\/p>\n

In September 2022, Powell announced he would be succeeded as CEO<\/a> by Kraken\u2019s chief operating officer, Dave Ripley, after which time he would stay with the crypto firm as the chair of the board. Paxos was also reportedly facing enforcement action<\/a> from the SEC for allegedly violating investor protection laws in dealing with Binance USD (BUSD<\/a>) stablecoins. <\/p>\n