Kraken vs SEC: Jesse Powell's Fiery Accusations Spark Crypto Clash

Kraken co-founder Jesse Powell's recent comments regarding the U.S. Securities and Exchange Commission (SEC) filing charges against the exchange have ignited a fiery debate. In a tweet, Powell accused the regulator of being the "USA's top decel" and claimed that the SEC was shopping for a different flavor of regulatory dominance in California after facing legal setbacks in New York. While the term "decel" is often used by tech enthusiasts to dismiss those who hinder progress, the SEC's allegations against Kraken are serious. The regulator has accused the exchange of operating as an unregistered securities exchange, broker, dealer, and clearing agency. Furthermore, the SEC alleges that Kraken commingled customer assets with company funds and used customer funds to pay its own bills. These charges come only months after Kraken settled earlier SEC charges by paying a $30 million fine and agreeing to halt its staking service in the U.S. Powell's frustration is evident in his remarks, suggesting that the SEC's return for a second round of scrutiny is akin to extortion. He argues that the SEC knows a real legal battle could cost $100 million and valuable time. Powell's decision to step down as CEO of Kraken in 2022 and focus on the company's products, user experience, and industry advocacy may have been influenced by the lack of collaboration and guidance he claimed the SEC provided during the previous settlement in February 2023.