Kraken CEO: ‘2025 Will Be a Year for More Accommodating Regulation’

State of the Crypto Market

• Ripley noted the significant improvement in the crypto market compared to the previous year.
• He highlighted the rise in Bitcoin prices and the overall positive sentiment in the market.
• Ripley said that Kraken has seen substantial success throughout the year due to the market’s strong performance.

Kraken’s Regulatory Challenges with the SEC

• Kraken is currently engaged in legal battles with the SEC.
• The company settled one issue with the SEC and has another ongoing case.
• Ripley mentioned that oral arguments for the motion to dismiss are taking place rtoday.
• The SEC contends that some digital assets qualify as securities, which Kraken disputes.
• Ripley emphasized the lack of a clear path to register these digital assets as securities.

Regulatory Landscape

• Ripley contrasted the U.S. regulatory environment with other regions like Europe, the UK, Canada, and Australia, which have more defined regulations for digital assets.
• He criticized the U.S. approach of “regulation by enforcement” allegedly led by the SEC.
• He acknowledged Congress’s efforts to pass meaningful regulations, mentioning the recent passage of the FIT 21 Bill in the House with strong bipartisan support.

FIT 21 Bill

• The FIT 21 Bill aims to provide a regulatory framework involving both the CFTC and the SEC, depending on the type of digital asset.
• The bill received 279 votes in the House, indicating solid bipartisan support, including 71 votes from Democrats.
• Ripley expressed optimism about the bill’s potential to bring positive changes to the regulatory environment.

Executive Branch’s Stance on Cryptocurrencies

• The Kraken CEO said that the executive branch, primarily through the SEC, has been largely negative towards cryptocurrencies.
• Ripley noted a recent shift, with the Biden Administration showing willingness to work with the industry and Congress to develop new regulations.
• He mentioned ongoing dialogues with supporters in Congress and the Senate.

Misconceptions and Challenges

• The interview touched on the Biden Administration’s concerns about cryptocurrencies being used for money laundering and ransomware.
• Ripley argued that these concerns are not the primary issues, highlighting the adoption of stablecoins and their role in promoting the U.S. dollar globally.
• He pointed out Kraken’s compliance with anti-money laundering regulations.

Political and Regulatory Outlook

• The discussion covered former President Trump’s recent comments on cryptocurrencies and his potential influence on future regulations.
• Ripley acknowledged that understanding and attitudes towards cryptocurrencies can evolve over time.
• He expressed hope that more politicians would become better informed about the benefits of cryptocurrencies.

Future of Kraken

• Ripley mentioned the possibility of an IPO for Kraken in 2025, depending on market conditions and regulatory developments.
• The company is considering another round of financing before a potential IPO.
• He emphasized the importance of accommodating regulations for the future growth of the cryptocurrency industry.