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The U.S. Securities and Exchange Commission (SEC) has slapped the crypto exchange Kraken with new charges, and Wyoming Senator Cynthia Lummis isn\u2019t happy about it.<\/p>\n
The SEC charged<\/a> Kraken this week with operating its crypto trading platform as an unregistered securities exchange, broker, dealer and clearing agency.<\/p>\n The regulator alleges the San Francisco-based exchange has made hundreds of millions of dollars \u201cunlawfully facilitating the buying and selling of crypto asset securities.\u201d<\/p>\n Gurbir S. Grewal, director of the SEC\u2019s Division of Enforcement, says in a press release that Kraken chose profits over investor protection.<\/p>\n \u201cWe allege that Kraken made a business decision to reap hundreds of millions of dollars from investors rather than coming into compliance with the securities laws. That decision resulted in a business model rife with conflicts of interest that placed investors\u2019 funds at risk.\u201d<\/em><\/p>\n Lummis (R-Wyoming), however, says<\/a> the SEC\u2019s action is another example of \u201cruling by enforcement.\u201d<\/p>\n \u201cCrypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers. It is time for Congress to pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity. The Lummis-Gillibrand Responsible Financial Innovation Act will rein in the SEC and allow financial innovation to thrive in the United States.\u201d<\/em><\/p>\n Lummis, a noted crypto supporter, has previously said<\/a> she wants a federal digital asset regulation bill to pass in the US early next year.<\/p>\n Earlier this year, Kraken, facing different charges from the SEC, agreed to stop its staking services and pay a civil penalty of $30 million.<\/p>\n Kraken co-founder Jesse Powell says<\/a> the regulator is now \u201cback for seconds.\u201d<\/p>\n \u201cMessage is clear: $30 million buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30 million, but the SEC knows that a real fight will likely cost $100 million+ and valuable time. If you can\u2019t afford it, get your crypto company out of the US warzone.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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