Kraken’s Powell Shares Hope for US Crypto Staking After SEC Settlement
12. Februar 2023
- 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.“