News View Non-AMP

Is SEC Trying to Kill The US Crypto Innovation?

Published by
Qadir AK

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.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Chamath Palihapitiya Highlights 5 Key Trends Fueling Crypto Growth in 2025

After Donald Trump returned to office with a pro-crypto stance, crypto deal-making has exploded in…

April 28, 2025

WazirX News: 85% Fund Recovery Plan Explained for Affected Users

The Supreme Court recently dismissed a petition filed by WazirX users following the platform’s major…

April 28, 2025

Ethereum’s Ambitious Plan to Scale TPS to 2,000 with 100x Gas Limit Boost

Dankrad Feist, a researcher from Ethereum, has unveiled a four-year plan to increase the blockchain’s…

April 28, 2025

Nexo Returns to the U.S. Market with New Offerings

Nexo has officially reentered the U.S. market, offering high-yield crypto savings accounts, asset-backed credit lines,…

April 28, 2025

China and U.S. Reduce Bitcoin Reserves, Total Government Holdings Fall 12% in Nine Months

Governments around the world continue to play an important role in the crypto space. However,…

April 28, 2025

Crypto Market Update Today: BTC and ETH Display Stability While PENGU, XMR, WAL Gain Massive Strength

After the rise in the past week, the investors have become more optimistic about the…

April 28, 2025