Kraken’s Powell Shares Hope for US Crypto Staking After SEC Settlement

12. Februar 2023

Summary

  • Kraken co-founder Jesse Powell commented on the recent SEC settlement that forced Kraken to halt its U.S. staking services and pay $30 million.
  • Powell expressed hope for a „legal, user-friendly version of custodial staking“ to be offered to US consumers, but admitted that it would be an expensive fight.
  • Powell also voiced support for Coinbase’s chief legal officer, Paul Grewal, who is trying to explain how their staking service differs from Kraken’s.

Kraken Co-Founder Comments on Staking & SEC Settlement

Jesse Powell, co-founder and exiting CEO of Kraken, commented on his company’s decision to halt its U.S. staking services in a series of tweets on Feb. 9th. Yesterday, Kraken reached a settlement with the U.S. Securities and Exchange Commission (SEC) that forced it to pay $30 million and discontinue staking services for U.S. customers – allegedly constituting a securities offering according to the SEC officials.

Risk Adjusted Return

Powell explained why he thought Kraken had chosen not to fight the SEC when asked about it – citing “risk-adjusted return” as the main reason behind this decision; implying an unlikely victory wouldn’t be worth the legal costs involved in such a battle . He also suggested other companies might have more resources available for defending themselves against these regulations than what Kraken had at its disposal; adding that during a bear market there was no better time for the SEC to target them since they had recently laid off 30% of their staff making them look weak in comparison due to their financials being exposed in full view of all involved parties..

Comments From Officials & Lawmakers

In response to comments from several lawmakers including Congress member Tom Emmer – who advocated against this type of action taken by The SEC – Powell agreed with him while also replying back directly to Hester Peirce (SEC Commissioner) who criticized her own agency yesterday for not setting out a compliance path which would make it easier for crypto companies like Kraken navigate through these complex regulations with more clarity: “The ‚This is wrong but I won’t tell you how to do it right. Want To find out if X works? Try It And See What Happens.‘ approach does not help the industry nor consumers.“ said Powell adding „We aren’t anti-regulation but we need a clear path To operate.“

„Legal User Friendly Version“

Finally expressing his own thoughts on this situation specifically relating back To The Staking issue at hand; Powell stated he hoped someone could prove in court that there was indeed such thing as “a legal user friendly version” Of custodial staking which could eventually be offered To US Consumers in general; admitting however That this process could end up being both lengthy and costly due To all involved factors at play here : “It’ll Be A Brutal Lengthy Expensive Fight… But The Industry And The USA Will Be Extremely Grateful“ ended Powell’s statement On This Topic .

Conclusion
To conclude , Jesse Powell made some insightful remarks regarding his own company’s stance On The Current Stakes Issue as well as commenting On Other Crypto Companies Who Could Potentially Be Targeted By The SEC In Similar Situations ; hoping That In Time A Clear Path Can Be Established For All Parties Involved Going Forward .