Kraken Co-founder, Jesse Powell shared a mixed-emotional post on X after Binance pleaded guilty<\/a> on Tuesday. In the post, he said that the current situation of the crypto industry feels \u201ca bit more fair\u201d. 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.<\/p>\n 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.<\/p>\n <\/p>\n 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<\/a> exchange outflow from the platform on 21 Nov 2023.<\/p>\n The founder also highlighted new challenges to the industry\u2019s reputation. Stating that any problematic operation offers governments an opportunity to further scrutinize and regulate cryptocurrency<\/a>.<\/p>\n Powell stressed the need for \u201cself-policing\u201d 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.<\/p>\n <\/p>\n 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.<\/p>\n 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\u2019s 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.<\/p>\n <\/p>\n Also Read: Elon Musk Says OpenAI\u2019s Discovery Extremely Concerning; Reason For Sam Altman\u2019s Exit<\/a><\/strong><\/p>\n The SEC charged Kraken\u2019s parent companies<\/a> in February with failing to register the offer and sale of its crypto assets. The parent companies agreed to pay $30 million in \u201cdisgorgement, prejudgment interest, and civil penalties.\u201d<\/p>\n 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<\/a>.<\/p>\n Kraken pointed out in a blog post earlier this week that the SEC\u2019s 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.<\/p>\n 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.<\/p>\nJesse Powell\u2019s Trust on Kraken\u2019s Shareholders<\/h2>\n
Kraken Vs SEC Till Now<\/h2>\n
![\"coingape\"](\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\"){kind=logo}
![\"\"](\"https:\/\/secure.gravatar.com\/avatar\/452042cc86ff4d4cff7e64f282bd5358?s=200&d=mm&r=g\"\/)
![\"\"](\"https:\/\/secure.gravatar.com\/avatar\/452042cc86ff4d4cff7e64f282bd5358?s=200&d=mm&r=g\")