‘Kraken Down’ — SEC commissioner rebukes own agency over recent action
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Pierce has publicly rebuked her own agency for shutting down the Kraken cryptocurrency exchange program in the United States.
Commissioner blown up her agency in a Feb. 9 statement titled “Kraken Down” arguing that forced regulation “is not an effective or fair way to regulate” an emerging industry. She wrote:
“Today, the SEC closed the Kraken staking program and considered it a win for investors. I don’t agree, and therefore I don’t agree.”
Pierce’s statement also criticized the regulator for shutting down “a program that has served the people well.”
“Using enforcement to tell people what the law is in a growing industry is not an efficient or fair way to regulate. Moreover, staking services are heterogeneous, so one-off enforcement actions and pattern analysis do not help,” she wrote.
My thoughts on today’s Kraken settlement: https://t.co/mijt3MNN4U
— Hester Peirce (@HesterPeirce) February 9, 2023
Pierce implied that the regulator was “lazy and paternalistic” and suggested that the SEC should have initiated “a public process to develop a workable registration process that provides investors with valuable information.”
Coinbase CEO and co-founder Brian Armstrong agreed with Pierce’s comments in a Feb. 9 tweet, suggesting that requiring companies to register their staking services is a “dishonest proposal” as there is no clear path to registration.
Well said. It was not possible to check in (disingenuous offer).
“Using enforcement to tell people what the law is in an emerging industry is not an efficient or fair way to regulate.” https://t.co/6wVZZbQt23
— Brian Armstrong (@brian_armstrong) February 9, 2023
Earlier this week, Armstrong said he had heard “rumors that the SEC would like to get rid of U.S. crypto staking for retail clients” and said “it’s going to be a terrible path for the U.S.” as it would further the development crypto business. offshore.
Coinbase is currently the subject of an SEC investigation similar to the one that led to the Kraken settlement, which was disclosed in the Aug. 9 SEC. registration was also associated with his betting services.
On February 9, the SEC announced that it had reached a $30 million settlement with Kraken, stating that it had failed to “register the offer and sale of its cryptoasset staking program as a service.”
Today, we accused Kraken of failing to register the offer and sale of their Crypto Asset Staking as a Service program, whereby investors commit Kraken crypto assets for staking in exchange for an advertised annual investment return of up to 21%.
— US Securities and Exchange Commission (@SECGov) February 9, 2023
The Kraken said in a blog post on February 9 mail that it will continue to offer betting services to non-U.S. customers through a subsidiary, but according to the SEC, the firm is permanently banned from providing betting services to U.S. residents, even if they attempt to register it with the regulator.
Getting rid of crypto staking would be a ‘terrible path’ for the US – Coinbase CEO
Pierce, also known as the “Cryptom Mom” of the Securities and Exchange Commission, has been a vocal advocate for the crypto industry during her time at the regulator.
Pierce has previously offered a “safe harbor” for token projects that seek to build decentralized networks, in which network developers will receive a three-year grace period when they are exempt from SEC lawsuits. She released updated version of her proposal dated April 13, 2021
Credit : cointelegraph.com