Jesse Powell, current CEO of cryptocurrency exchange Kraken, has lashed out at US financial regulators for letting “bad guys” win for the convenience of his political agenda.
In a February 19 Twitter thread, Powell speculum with what US regulators – including, it seems, the Securities and Exchange Commission (SEC) – were allowing cryptocurrency companies to operate without taking control measures as a way to go after the companies that are their true targets. According to Kraken’s CEO, allowing bad actors to “accumulate users, revenue and venture capital” that are available to companies that operate in good standing could effectively destroy the industry, leaving competition to trample each other and regulators to subsequently jail. to offenders.
“Actually, the bad actors are on their side,” Powell said. “The good guys are the enemy. If the bad guys can run long enough without getting you in trouble, they might take down the good guys for you.”
I have a theory:
Regulators let the bad guys get big and blow up because it serves their agenda.1. destroy capital/resources in crypto ecosystem
2. burn people, determine adoption
3. give air cover to attack good actorsThe bad guys are actually on-side. Good guys are the enemy. https://t.co/DZI2O8gVyO
—Jesse Powell (@jespow) February 19, 2023
I have a theory:
Regulators let the bad guys get big and get into trouble because they serve their agenda.1. Destroy capital/resources in the crypto ecosystem
2. Harm people, discourage adoption
3. They provide air cover to attack good actorsActually, the bad guys are on their side. The good guys are the enemy.
Powell’s statement came after Kraken reached a settlement with the SEC in which the crypto firm agreed to stop offering staking services or programs to US clients and to pay $30 million in restitution, late-payment interest, and civil penalties. . Many in the cryptocurrency industry have criticized the SEC’s actions as another example of “regulation by enforcement,” a criticism that extends to the regulator’s crackdown on celebrities backing cryptocurrency projects through social networks.
In September 2022, Powell announced that he would be succeeded as CEO by Kraken COO Dave Ripley, after which he would remain with the crypto firm as Chairman of the Board. According to various stories, Paxos was also facing SEC action for allegedly violating investor protection laws when dealing with the Binance USD (BUSD) stablecoin.
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