Is SEC Trying to Kill The US Crypto Innovation?
We all know that Kraken, a leading cryptocurrency exchange with a stellar reputation for integrity and one of the industry’s most secure platforms, was sued by the U.S. Securities and Exchange Commission (SEC) for failing to register its crypto-staking services, which ultimately resulted in Kraken paying the regulator $30 million and ending its staking operations in the United States.
A further investigation into Coinbase, another cryptocurrency exchange, and Paxos, a provider of stablecoins, followed, making it clear that the agency is coming onto crypto possibly harder than ever before.
Gary Gensler’s Actions Are Blatantly Misguided
Aaron Arnold, a prominent cryptocurrency expert and YouTuber, has said that the move by the SEC is questionable. Gary Gensler, the head of the SEC, is not a supporter of cryptocurrencies, and he has made no attempt to conceal this fact. The assertions that he had made, namely that Kraken ought to have registered its staking services with the SEC, have been debunked as lies by significant participants in the cryptocurrency industry.
Brian Armstrong, founder and CEO of Coinbase, was the one who first warned us of the likelihood of an SEC crackdown on cryptocurrency staking in the United States. Armstrong has now openly called the regulator out for their actions. Charles Hoskinson, the inventor of Cardano, has also said that the SEC lied.
Furthermore, the SEC’s own Commissioner, Hester Pierce, has been quoted as stating that crypto-related offers cannot pass through the SEC’s registration pipeline in the present environment. This comment was issued in reference to the Kraken incident.
Pierce has spoken out against her colleagues, saying that she does not agree with the way Kraken was handled or with the agency’s justification that it was protecting American investors.
These responses have not dissuaded Gensler too much; nonetheless, the next issue, which was brought up by Aaron Arnold, is whether or not he will go after Coinbase next.
It is interesting to note that Armstrong made a bold statement against the SEC just yesterday, saying that his company’s staking services are not securities, and he is willing to go to court to defend that.