Crypto News: U.S. Securities and Exchange Commission‘s (SEC) crackdown on the digital asset industry continues. In the recent attack, the SEC charged Kraken, a crypto exchange for failing to register their staking service. However, Kraken’s CEO came out to be mocking the commission’s actions taken against them.
SEC Crackdown TO Continue?
In an interview with CNBC, SEC Chair Gary Gensler stated that Kraken was offering users a return of 4% to 21% on their crypto tokens. However, the problem appeared to be that the accused exchange didn’t disclose the risk involved with the users.
Gensler mentioned that one can take whatever risks one wants to take while firms like Kraken can offer investment contracts and schemes. It should be fully fair and disclosed. However, the exchange was caught not complying with the basic law. Read More Crypto News Here….
He added that the SEC is technology neutral and still very focused on investor protection. Gensler alleged that Kraken knew how to register and it is just a form on the official website. The SEC needs full disclosure because investors need that.
Kraken CEO Mocks US Watchdog
To this statement, Jesse Powell, CEO of Kraken reacted in a different way. He stated that all he had to do was just fill out a form on a website telling people that staking rewards come from staking. However, he wished that he would have seen this video before paying a $30 million fine. Meanwhile, now the crypto exchange agreed to permanently shut down its staking service in the U.S.
However, Powell jokingly added that the $30 million fine paid to the SEC would first go to the treasury. After that, he imagine that the fund would be transferred to Zelensky or Pfizer.
Kraken CEO also went on to say that Congress must act to protect the domestic crypto industry. If they fail to do this then many of them will go offshore.