Just-In: Founder Jesse Powell Open Up About US SEC Lawsuit Against Kraken

Kraken co-founder Jesse Powell reacted angrily to the U.S. Securities and Exchange Commission (SEC) lawsuit against crypto exchange Kraken. He calls the securities regulator SEC a ‘decel’ and SEC Chair Gary Gensler a ‘masochist’, preventing technological innovation in the United States. Jesse Powell plans to defend against the SEC this time.

Kraken Co-Founder Jesse Powell Slams SEC

Jesse Powell took to X on November 21 in response to the SEC lawsuit against Kraken. He believed they settled all SEC concerns with a $30 million settlement in February, but the SEC keeps coming after them.

“USA’s top decel is back with another assault on America. The masochists haven’t been happy with the beatings they’ve been taking in NY and are shopping for a different flavor of RegDom in CA,” said Powell.

Jesse Powell cleared his intentions to defend this time, stopping the SEC’s illogical enforcement actions against the crypto industry. He remarked, “$30m buys you about 10 months before the SEC comes around to extort you again.” The SEC wants crypto firms to get their companies out of the U.S. if they can’t afford more than $100 million to give to the SEC.

The SEC has alleged that Kraken operates an unregistered national securities exchange, broker, and clearing house. Kraken disagrees with the SEC’s claims and prepares to strongly defend this time.

“Nonpartisan Congressional action is the most effective path forward to avoid the U.S. litigating its way to the back of the line as crypto rule making advances around the world.”

Also Read: Mike Novogratz Sees Binance Settlement as Key to Crypto Stability

SEC Keeps Losing In Lawsuits

The SEC’s actions against the crypto industry are called arbitrary and capricious by federal judges. The SEC has also been criticized for its hypocrisy.

The SEC has lost against Ripple Labs and Grayscale, judges ended up supporting the crypto firms as the SEC’s arguments were found to be irrational. Jesse Powell has cleared his intentions this time to fight against the SEC and defeat them.

 Also Read: US Senator On Kraken Lawsuit: “SEC Unnecessarily Harming Customers”