US Senator On Kraken Lawsuit: “SEC Unnecessarily Harming Customers”
US Senator Cynthia Lummis, a pro-crypto lawmaker from Wyoming, lashed out at the US Securities and Exchange Commission (SEC) over the Kraken lawsuit that charged the crypto exchange of operating as an unregistered securities exchange, broker, dealer, and clearing agency. The lawsuit comes after a long drawn investigation, following reports on February 9, 2023 about the exchange being under the SEC’s watch for potential misdoings.
Also Read: Binance Coin (BNB) Records 90-Day High Amid $4B US Settlement Negotiations
Ruling By Enforcement
Reacting to the Kraken lawsuit news, Senator Lummis said the SEC cannot continue ruling by enforcement. The enforcement comes amid repeated attempts by crypto asset companies to get guidance from the SEC, she said. The attempts only attracted enforcement actions, causing unnecessary harm to consumers. The Senator called for the passing of a regulatory framework by the Congress to provide clear rules to the SEC. The rules should define which assets qualify as securities and which ones as commodities, she added in a statement.
Earlier in 2023, Senator Lummis along with Kirsten Gillibrand presented the Responsible Financial Innovation Act, which is aimed at categorizing a majority of cryptocurrency assets as commodities.
Lengthy Probe On Kraken
Earlier in February 2023, CoinGape reported that the US SEC began investigating Kraken for possible violations of offering unregistered securities in the United States. The latest complaint came on the same lines, stating that the exchange allegedly made hundreds of millions of dollars in crypto trading unlawfully. Also, while operating as an exchange, broker, dealer, and clearing agency, Kraken continued without having registered with the SEC, the agency said in the complaint.
On the other side, Kraken has a history of settling with the US SEC. In February 2023, the exchange had officially agreed to closing down its crypto staking service and pay $30 million in penalties, in what was a crackdown on crypto staking for retail investors.
Also Read: Canada Wants Public Feedback to Enshrine Crypto Disclosures
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
