The founder of Kraken has attacked the United States Securities and Exchange Commission (SEC) head-on, accusing it of favoring bad actors in the ecosystem in order to serve its own agenda. Jesse Powell claims that this way, US regulators can criticize cryptocurrencies as a whole when a major player ends up imploding.
Jesse Powell frontally attacks American regulators
Jesse Powell, founder of cryptocurrency exchange Krakenone of the oldest in our ecosystem, spoke to provide feedback on recent decisions by US regulators.
An exit that appears shortly after the United States Securities and Exchange Commission (SEC) imposed a $30 million fine on Kraken. In addition, the exchange has been banned from offering its staking services on American soil until further notice.
Known for his outspoken statements, Jesse Powell did not mince his words, the latter literally accusing the SEC of letting the bad players in the ecosystem grow in order to crush the good players, and this in order to serve its own agenda:
I have a theory:
Regulators let the bad guys get big and blow up because it serves their agenda.
1. destroy capital/resources in crypto ecosystem
2. burn people, deter adoption
3. give air cover to attack good actors
The bad guys are actually on-side. Good guys are the enemy. https://t.co/DZI2O8gVyO
— Jesse Powell (@jespow) February 19, 2023
” […] If the bad guys can run long enough without exploding, they can kill the good guys for you. The bad guys have huge competitive advantages. They suck up users, revenue, and venture capital that otherwise would have gone to the good guys. The bad guys can always be imprisoned later. »
Earlier, on February 15, the founder of Kraken already accused the SEC of requiring crypto exchanges to register in order to offer custody services while preventing them from actually doing so.
In other words, SEC Would Do Anything To Make Life Hard For Benevolent Cryptocurrency Exchanges, in particular by leaving them to suffocate under an avalanche of fines and restrictions of all kinds. On the contrary, malicious actors would have free rein to extend their aura, until the day when the latter implode and the mass can point their finger at them by encompassing the entire crypto ecosystem. A scenario that is reminiscent of FTX.
Charles Hoskinson, the founder of Cardano (ADA), supported Jesse Powell’s words in a tweet where he added that ” the alert had been given months, even years before the events “, referring to the bankruptcy of certain players in the ecosystem.
👉 Read also – Polygon Labs lays off 20% of its staff
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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