Kraken’s Jesse Powell Reacts To Binance Plea, Urges Responsible Crypto Practices

Kraken Co-founder, Jesse Powell shared a mixed-emotional post on X after Binance pleaded guilty on Tuesday. In the post, he said that the current situation of the crypto industry feels “a bit more fair”. Powell stated that the industry has addressed two major shareholder concerns in recent years: the rapid rate of development and the apparent inability to overcome legal hurdles.

Powell shows his deep concern over the sanctioning of good companies by regulating authorities. The legal actions have cost the firms a hefty amount of money with a dwindling market share, he argues.

Jesse Powell’s Trust on Kraken’s Shareholders

Proceeding further, he stated that fortunately, the company has long-term oriented shareholders who trust them. The statement came after Kraken reported a massive Bitcoin exchange outflow from the platform on 21 Nov 2023.

The founder also highlighted new challenges to the industry’s reputation. Stating that any problematic operation offers governments an opportunity to further scrutinize and regulate cryptocurrency.

Powell stressed the need for “self-policing” in the absence of prompt protection, asking for responsible industry practices. As Kraken continues discussions with the US SEC for potential settlements, Powell strongly advocates for individuals to utilize and recommend the services of companies actively engaged in legal battles with the government as a means of showing support.

In response to recent criticism, Powell disagrees with charges of KYC-maximalism. He claims that the primary goal is to prevent unnecessary difficulties in the effort to introduce the world to cryptocurrency.

Powell believes that the objective is to keep opponents from winning easily, and warns against becoming distracted by side quests that require combating all of the world’s crimes. He also stated the impracticality of avoiding Know Your Customer (KYC) protocols, claiming that it is not a viable position for any significant transaction.

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Kraken Vs SEC Till Now

The SEC charged Kraken’s parent companies in February with failing to register the offer and sale of its crypto assets. The parent companies agreed to pay $30 million in “disgorgement, prejudgment interest, and civil penalties.”

In a Nov 20 complaint filed in federal court in San Francisco, the SEC accuses Kraken of operating a platform that illegally facilitates the buying and trading of cryptocurrencies since 2018. This came after DoJ slammed Binance with a $4 Billion settlement.

Kraken pointed out in a blog post earlier this week that the SEC’s assertion is false about investment contracts. Kraken stated that the statement was wrong as a matter of law, dishonest as a matter of truth, and terrible as a matter of policy.

Crypto advocates like Ripple lawyer John E Deaton, Coinbase CEO Brian Armstrong, and many others have recently shown support to Kraken and demanded a clean chit.

Also Read: US Prosecutors Want Binance’s Changpeng Zhao to Remain In the US, What Follows?