The CEO of cryptocurrency exchange Kraken, Jesse Powell, says US regulators have “allowed the bad guys to get big and bust because it serves their purpose.” The executive explained, “Bad guys operate with huge competitive advantages. They’re sucking up users, revenue and venture capital that would otherwise go to the good guys.”
Kraken CEO Has A Theory About US Cryptocurrency Regulation
The chief executive of cryptocurrency exchange Kraken, Jesse Powell, took to Twitter on Sunday to express his opinion on cryptocurrency regulation in the United States. The artist started:
I have a theory: the regulators let the bad guys get big and explode because it serves their purpose.
Powell named three goals that he believes regulators are trying to achieve. First, “destroy capital/resources in [the] crypto-ecosystem,” he wrote. The second is “burn people, [and] deter adoption,” he continued, adding that the third is “to provide air cover to attack good actors.”
The Kraken boss told regulators: “The bad guys are really on the side. The good guys are the enemy.” However, he stressed, “If the bad guys can run long enough without exploding, they might just kill the good guys for you.” Noting that the bad guys “can always go to jail later,” Powell warned:
Bad guys operate with huge competitive advantages. They’re sucking up users, revenue, and venture capital that would otherwise go to the good guys.
In another tweet, Powell commented on how regulators often look to Congress for additional funding to more effectively regulate the crypto sector. “Funding is an obvious scapegoat. “If we had a bigger budget, we could make it.” The facts don’t support this, but instead of imposing real consequences for failure, we reward with big budgets. The glory lies in responding to natural disasters, which is why politicians create disasters,” he said.
Earlier this month, the US Securities and Exchange Commission (SEC) took action against Kraken over its staking program. The cryptocurrency exchange has settled with the SEC, closed its staking program for U.S. clients, and agreed to pay $30 million in fines for non-payment, pending interest, and civil penalties.
Powell also recently expressed disappointment that regulators ignored his warning about illegal activities in the crypto space and then took enforcement action against his exchange. Without specifically talking about the collapse of the FTX cryptocurrency exchange, the head of Kraken tweeted on Friday:
I can’t tell you how frustrating it is when you point out so many red flags and clearly illegal activities to regulators only to have them ignore the issues for years. They are offshore. It’s Complicated. We are looking at everyone. FOR YEARS. Then, to use them as an example.
What do you think of Kraken CEO Jesse Powell’s theory about regulators in the US allowing bad guys to go big and then not fit their agenda? Let us know in the comments below.
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