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The CEO of crypto exchange Kraken, Jesse Powell, has actually called on Congress to pass a law to protect the U.S. crypto industry after the Securities and Exchange Commission (SEC) acted versus his trading platform over its crypto staking service.

Kraken’s CEO Responds to SEC Action

Kraken CEO Jesse Powell advised Congress to pass a law to protect the domestic crypto industry on Thursday after the U.S. Securities and Exchange Commission (SEC) charged his crypto trading platform over its staking service.

The Kraken employer tweeted:

Congress need to act to protect the domestic crypto industry and U.S. customers who will now be going offshore to acquire services no longer offered in the U.S.

As part of the settlement with the securities regulator, Kraken concurred to end its crypto staking program for U.S. customers and pay $30 million in disgorgement, prejudgment interest, and civil charges.

Kraken clarified in a blog site post on Thursday:

Staking services for non-U.S. customers will continue continuous. Non-U.S. customers can continue to stake and unstake properties, in addition to instantly make and stake benefits, as normal.

Following the securities guard dog’s enforcement action over Kraken’s staking program, SEC Commissioner Hester Peirce released a declaration disagreeing and dissenting from her firm’s action. “A paternalistic and lazy regulator settles on a solution like the one in this settlement: do not initiate a public process to develop a workable registration process that provides valuable information to investors, just shut it down,” she composed.

Responding to Commissioner Peirce’s declaration, Powell tweeted, “Some guidance would be appreciated.” He included that the SEC’s method of “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” does not assist the crypto industry or customers. “We aren’t anti-regulation but we need a clear path to operate,” he worried.

In a follow-up tweet, the Kraken executive believed:

I truthfully hope that someone shows, in court, that there is a legal, easy to use variation of custodial staking that can be used to U.S. customers. It’ll be a harsh, prolonged, costly battle and a huge diversion however the industry and the U.S.A. will be exceptionally grateful.

What do you consider the SEC pursuing crypto staking programs at exchanges? Let us understand in the comments area below.

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