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Kraken CEO Addresses SEC Lawsuit, Advocates for Crypto Regulation Clarity

source-logo  cryptonewsland.com 23 February 2024 03:44, UTC
  • Kraken CEO Dave Ripley discloses details and challenges on SEC’s actions.
  • He emphasizes overreach, and urges new crypto rules.
  • Kraken moves to dismiss SEC complaint, highlighting regulatory concerns.

In a series of tweets, Kraken CEO Dave Ripley sheds light on the unfolding situation involving the SEC’s lawsuit against the cryptocurrency exchange. Ripley takes to Twitter to share the real story behind Kraken’s stance and the subsequent legal action.

(10/10) The U.S. risks losing its standing as a world leader in innovation if it continues allowing its regulatory agencies to assert statutory authority without explicit permission from Congress.

Read more: https://t.co/BjGyIZgUhL

— Dave Ripley (@DavidLRipley) February 23, 2024

According to the post, Ripley starts from the beginning. On May 10, Kraken testified before key congressional committees, criticizing the SEC’s approach to crypto regulation and highlighting concerns about overreach. The exchange urged Congress to craft new crypto rules and limit the SEC’s jurisdiction in favor of other agencies, arguing for a more comprehensive and balanced regulatory framework.

The next day, the SEC informed Kraken of its intent to sue. Ripley emphasizes that crypto innovators in the U.S. should not face retaliation for expressing their political views and advocating for improved legislation and more efficient markets.

Kraken is now taking steps to dismiss the complaint, asserting that it was strategically timed to intimidate those questioning the SEC’s jurisdiction. Importantly, the complaint fails to allege any illegal trading of securities on Kraken.

Ripley criticizes the SEC’s complaint, arguing that it seeks to endorse a theory allowing investment contracts without contracts or post-sale obligations. He contends that this theory lacks a limiting principle, potentially giving the SEC limitless authority over various forms of commerce.

Highlighting the global landscape of regulatory advancements, Ripley emphasizes that U.S. crypto exchanges should not operate amid regulatory uncertainties while other jurisdictions progress with constructive rulemaking.

In the final tweet, Ripley warns that the U.S. risks losing its position as a global innovation leader if regulatory agencies continue to assert authority without explicit congressional permission. The tweets collectively provide insight into Kraken’s perspective on the SEC lawsuit and the broader regulatory challenges faced by the crypto industry in the United States.