Jesse Powel, the co-founder and CEO of Kraken, a cryptocurrency exchange, thinks Users should blame regulators for the ongoing crypto crises.
Kraken CEO: Are Regulators Out to Kill Crypto?
Responding to a tweet on Feb. 20, Jesse theorized that regulators took a step back and allowed the bad guys to get big before blowing up because he believed it “serves their agenda.” “.
Ecosystem resources and capital will be destroyed when such fear happens in crypto. At the same time, people are burned, preventing adoption, which is negative for the industry. Additionally, Jesse notes that the Regulators seem to have “good air cover” when it comes to an explosion to target good players in the sphere.
The crypto industry is still nascent, although the underlying technology has been around since 2009, when Bitcoin first came to market.
Bitcoin price on February 20 | Source: BTCUSDT on Binance, TradingView
Despite the passage of time, cryptocurrencies have continued to gain mainstream acceptance following the ICO hysteria of 2017-2018. There have been several innovations in fundraising over the last five years, with the launch of DeFi protocols and NFT projects being one of the main highlights.
According to Powell and other experts, regulators tasked with creating a fair environment and protecting investors have been slow to adapt in the face of this explosion of tokens and projects. Policymakers have yet to develop blueprints that will clearly define most cryptocurrencies in most jurisdictions.
SEC crackdown on good and bad projects
For comparison, in the United States, the Securities and Exchange Commission (SEC) only recognizes bitcoin as a commodity. On multiple occasions, SEC officials have said that most cryptocurrencies are unregistered securities.
Ripple Inc., a blockchain company, has an ongoing case with the SEC after its executives were sued over the sale of XRP, which the regulator insisted was offered to investors as an unregistered security.
Last week, the SEC sent a notice from Wells to Paxos, the issuer of BUSD, saying the stablecoin was an unregistered security.
The lack of clear rules and regulators, particularly in the United States, taking action against the crypto industry, including exchanges and stablecoin issuers, is what Jesse wants to change.
He argues that regulators should take a “proactive” approach and not wait for a crisis to hit and lump good crypto projects together as enemies.
Kraken’s CEO adds that bad companies are already operating with “huge competitive advantages” as they suck users, revenue and venture capital that would otherwise have flowed into good projects.
Kraken recently settled $30 million with the SEC with an agreement that they would shut down their crypto staking service in the United States.
Featured image by Canva, chart by TradingView
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