Following the US Department of Justice's groundbreaking settlement with Binance, Kraken co-founder Jesse Powell shared his views on the burgeoning cryptocurrency industry.
Kraken Co-Founder Sees Crypto Environment More Fair After Binance Deal
Powell acknowledged the challenges facing the industry, including the recent lawsuit filed against Kraken by the U.S. Securities and Exchange Commission.
Despite the hurdles, Powell expressed optimism about the fairness of the crypto space, especially after the historic settlement with Binance that included a $4.3 billion fine.
Highlighting persistent threats to the industry's reputation, Powell emphasized the need for self-regulation within the crypto community.
Referring to the difficulties faced by platforms such as Kraken, Coinbase and Ripple, Powell described these platforms as easy targets of the SEC within their jurisdiction.
Regarding the recent SEC lawsuit against Kraken, Powell expressed skepticism about the regulatory environment.
Commenting on the $30 million settlement that Kraken's parent companies reached with the SEC in February, he said, “The message is clear: $30 million will buy you about 10 months before the SEC comes back to extort you.”
Powell urged crypto companies to carefully consider their position in the regulatory environment. He emphasized that a real legal battle with the SEC could result in costs exceeding $100 million.
Powell's advice to those who can't afford such wars was clear: “If you can't afford it, get your crypto company out of the US battlefield.”
*This is not investment advice.
