Crypto Industry Should Self-Police, Says Kraken Co-founder

Published 23/11/2023, 16:10
Crypto Industry Should Self-Police, Says Kraken Co-founder
COIN
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  • Despite regulatory challenges and the recent SEC lawsuit, Kraken co-founder Jesse Powell expresses confidence.
  • Powell advocates for self-regulation within the crypto industry, citing the need to address emerging threats.
  • Kraken co-founder calls for self-policing.

Following the recent $4.3 billion fine imposed on Binance by the U.S. Department of Justice and a lawsuit from the U.S. Securities and Exchange Commission (SEC) against Kraken, co-founder Jesse Powell acknowledged the current state of the industry.

“The last 12 months have answered two nagging questions from shareholders: How are they going so fast? How are they getting away with it?” Powell remarked. He hinted at the challenges faced by crypto exchanges as the regulatory landscape tightens.

Powell expressed cautious optimism following Binance’s settlement, stating that the game “feels a bit more fair today.” However, he emphasized the need for the industry to be proactive in addressing challenges to its reputation.

“Each dodgy operation represents an opportunity for governments to scapegoat crypto and tighten the noose. We clearly cannot count on timely protection. We have to self-police,” Powell asserted.

Drawing attention to the regulatory spotlight on Kraken, Powell highlighted the SEC’s actions against other industry players like Coinbase (NASDAQ:COIN) and Ripple. He characterized these firms as the SEC’s “easy targets,” conveniently situated in their regulatory crosshairs.

Powell criticized the selective enforcement and suggested that targeting offshore entities, though more effort-intensive, would be a fairer approach.

The co-founder’s statements reflect the ongoing tension between crypto companies and regulators, with Powell urging the need for self-regulation to maintain industry integrity.Kraken itself faced SEC charges in February related to its crypto asset staking-as-a-service program, settling for $30 million. Powell, in an earlier tweet, conveyed a message to the industry, stating, “If you can’t afford it, get your crypto company out of the U.S. warzone.”

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