Kraken co-founder Jesse Powell strongly criticizes SEC after lawsuit, says crypto should leave the US. Image by IB Photography, Adobe Stock.
Kraken co-founder Jesse Powell did not mince words recently when he criticized the United States Securities and Exchange Commission (SEC) for suing his cryptocurrency exchange.
Powell denounced the regulator as the “USA’s top decel” and warned other crypto companies to leave the “US warzone” in order to avoid costly legal battles.
Kraken Co-founder Jesse Powell Takes Aim at the SEC
Powell’s scathing remarks came after the SEC filed a lawsuit against Kraken, alleging securities law violations.
This latest legal action comes just months after Kraken paid $30 million to settle previous claims that it offered unregistered securities through its staking services.
USA’s top decel is back with another assault on America. The masochists haven’t been happy with the beatings they’ve been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they’re back for seconds? https://t.co/SkfPJyneUz
— Jesse Powell (@jespow) November 21, 2023
In a social media post, Powell blasted the SEC as a “top decel,” a derogatory tech term for someone who slows progress.
He claimed the agency was not satisfied with the $30 million settlement it extracted from Kraken in February.
Powell warned other crypto firms that this amount “buys you about 10 months before the SEC comes around to extort you again.”
Kraken Fights Back Against Regulator’s Lawsuit
The Kraken co-founder advised crypto companies to relocate outside of the US to avoid further troubles.
“If you can’t afford it, get your crypto company out of the US warzone,” he wrote online.
The SEC’s lawsuit alleges Kraken failed to register as a securities broker and comingled customer funds.
Nevertheless, Powell’s inflammatory remarks reveal deepening tensions between crypto firms and regulators like the SEC.
This latest salvo suggests more legal battles ahead as the agency aggressively asserts its authority over the crypto space.
For Kraken and Powell, the SEC’s scrutiny is far from over, despite February’s multi-million dollar settlement. The exchange says it will defend its position in court.
But the co-founder’s call for a crypto exodus underscores fears that innovations could migrate abroad due to America’s strict regulatory climate.
As crypto continues its rise, the coming months will likely see increased clashes between innovators like Kraken and regulators–potentially deciding the future accessibility of cryptocurrencies for US citizens.
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