Feb 11, 2023
Crypto Community Outraged Over SEC Charges Against Kraken
The crypto-verse is in an uproar over the recent action taken by the U.S. Securities and Exchange Commission (SEC) against crypto-exchange Kraken. On February 9, the SEC announced that it had settled charges with Kraken for failing to register their crypto asset staking-as-a-service program as securities. Kraken agreed to pay $30 million in fines and immediately cease offering staking services to U.S. retail investors, though they will continue to be offered offshore.
The move has drawn criticism from the crypto community, investors, politicians and industry executives. Adam Cochran, partner at Cinneamhain Ventures and Ethereum bull, called out SEC chief Gary Gensler, describing him as “an agent of an anti-crypto agenda” rather than a regulator. He questioned why the same standards weren’t applied to Sam Bankman-Fried and FTX.
Kristin Smith, CEO of the Blockchain Association, stated that this situation is a textbook example of why Congress should be working with industry players to craft appropriate legislation, rather than relying on the SEC. U.S. Congressman Tom Emmer, a long-time critic of Gary Gensler, also weighed in, explaining that staking services will play a critical role in building the next generation of the internet. He believes that the “purgatory strategy” will hurt everyday Americans the most, as they may be forced to seek such services offshore.
Ryan Sean Adams, founder of the Ethereum show Bankless, suggested that the SEC could have taken other measures, such as mandating proof-of-reserves, requiring staking transparency and supporting decentralized staking, rather than charging Kraken out of the blue. He also noted that this could potentially impact Ethereum’s consensus layer, as Kraken is the fourth-largest validator on Ethereum according to Nansen.
Not everyone was against the SEC’s decision. Bitcoin bull Michael Saylor agreed with Gensler’s analysis that retail investors “lose control” of their tokens when they’re delegated to external staking service providers. Jake Chervinsky, attorney and chief policy officer of the Blockchain Association, reminded the crypto-verse that these settlements are not law, and Kraken’s decision to settle was likely an economic decision rather than a legal one.
The SEC’s action towards enforcing action against staking service providers has caused Coinbase CEO Brian Armstrong to express concern, saying that “regulation by enforcement” would be a “terrible path” for U.S. innovators, as they’ll be forced to push more of their services offshore.
The SEC’s decision has opened up a conversation around the future of NFTs, crypto, and web3. As the industry continues to grow, the need for an effective NFT marketing strategy is becoming more and more apparent. NFTs offer an opportunity for businesses to promote their products and services in a unique and engaging way, and many are now turning to NFT marketing agencies to help them reach their goals.
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Overall, the SEC’s action against Kraken has sparked a lively debate in the crypto-verse. It has also highlighted the importance of NFT marketing strategies, as businesses must now look for ways to effectively promote their NFTs in order to succeed in the web3 space.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
