The founder of Kraken has lashed out at the US Securities and Exchange Commission (SEC), accusing it of favouring bad actors in the ecosystem in order to serve its own agenda. Jesse Powell argues that this allows US regulators to criticise cryptocurrencies as a whole when a major player eventually implodes.
Jesse Powell attacks US regulators head on
Jesse Powell, the founder of cryptocurrency exchange Kraken, one of the oldest in our ecosystem, has spoken out to give his opinion on recent decisions by US regulators.
An exit that comes shortly after the US Securities and Exchange Commission (SEC) fined Kraken $30 million. In addition, the exchange has been banned from offering its staking services in the US until further notice.
Known for his outspoken statements, Jesse Powell did not mince his words, literally accusing the SEC of letting the bad players in the ecosystem develop in order to crush the good ones, 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 would otherwise have gone to the good guys. The bad guys can always be jailed later. “
Earlier, on February 15, Kraken’s founder was already accusing the SEC of requiring crypto exchanges to register in order to offer custody services while preventing them from actually doing so.
In other words, the SEC would do anything to make life difficult for benevolent crypto exchanges, including leaving them suffocating under an avalanche of fines and restrictions of all kinds. Instead, malicious actors would have free rein to expand their aura, until the day when the latter implode and the masses can point the finger at them encompassing the entire crypto ecosystem. A scenario not unlike FTX.
Charles Hoskinson, the founder of Cardano (ADA), supported Jesse Powell’s claims in a tweet where he added that “the warning had been given months, if not years before the events”, referring to the failure of some players in the ecosystem.