Jesse Powell, CEO of cryptocurrency exchange Kraken, says US regulators have “allowed the bad guys to swell and explode because it serves their agenda.” The CEO explained: “The bad guys operate with massive competitive advantages. They suck out users, revenue and investment capital that would otherwise go to the good guys.”
The CEO of Kraken has a theory about cryptocurrency regulation in the US
Jesse Powell, CEO of cryptocurrency exchange Kraken, took to Twitter on Sunday to express his opinion regarding cryptocurrency regulation in the United States. The CEO began:
I have a theory: Regulators let the bad guys swell and explode because it serves their agenda.
Powell set out to outline three goals he believes the regulators are trying to achieve. The first is the “destruction of capital/resources”. [the] crypto-ecosystem,” he wrote. The second is “burning people, [and] deter adoption,” adding that the third step is to “provide air cover to attack good actors.”
The Kraken president emphasized this to the organizers: “The bad guys are actually on the same side. The good guys are the enemy.” However, he asserted: “If the bad guys can run long enough without blowing up, they might just kill the good guys for you.” Noting that bad guys “could be jailed later,” Powell warned:
The bad guys operate at huge competitive advantages. They suck out users, revenue, and investment capital that would otherwise go to the good guys.
In another tweet, Powell commented on how regulators often seek more funding from Congress in order to more effectively regulate the crypto sector. “Financing is the obvious scapegoat. If we had a bigger budget, we would have realized it.” The facts don’t support that, but instead of imposing real consequences for failure, we reward with bigger budgets. All the glory lies in disaster response, so politicians make disasters “.
Earlier this month, the US Securities and Exchange Commission (SEC) took action against Kraken over its staking program. The cryptocurrency exchange settled with the Securities and Exchange Commission, shut down its staking program for US clients, and agreed to pay $30 million in cancellation, pre-interest, and civil penalties.
Powell also recently expressed frustration with how regulators ignored his warning about illegal cryptocurrency activity and then slapped the exchange with enforcement action. Without specifically mentioning collapsed cryptocurrency exchange FTX, the head of Kraken tweeted on Friday:
I can’t tell you how infuriating it is when I point out huge red flags and apparent illegal activity for regulators only to have them ignore cases for years. They’re out. It is complicated. We look at everyone. for years. Then to use them as an example.
What do you think of Kraken CEO Jesse Powell’s theory of US regulators allowing bad guys to grow exponentially and then fail to keep up with their agenda? Let us know in the comments section below.
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