Feb 11, 2023
Crypto Community Outraged Over SEC’s Kraken Charges
The crypto community has been in an uproar following the recent charges brought against crypto exchange Kraken by the United States Securities Exchange Commission (SEC). The SEC alleged that Kraken had failed to register its crypto asset staking-as-a-service program, which the SEC qualified as securities under its purview.
In response, Kraken agreed to pay a $30 million fine and cease offering staking services to U.S. retail investors. This move has sparked discontent among investors, politicians, and industry executives, in addition to the general crypto community.
Adam Cochran, a partner at Cinneamhain Ventures and an Ethereum bull, criticized SEC chief Gary Gensler for what Cochran described as “an anti-crypto agenda”, and questioned why the same standards weren’t applied to Sam Bankman-Fried and FTX.
Kristin Smith, CEO of the Blockchain Association, released a statement on Twitter that the situation at hand is a textbook example of why Congress — not the SEC — should be working with industry players to craft appropriate legislation.
U.S. Congressman Tom Emmer weighed in on the matter, emphasizing the importance of staking services in the crypto ecosystem, and noting that the “purgatory strategy” will hurt “everyday Americans the most”, as they may soon be forced to seek such services offshore.
Ryan Sean Adams, the founder of the Ethereum show Bankless, suggested that the SEC could have taken other measures rather than charging Kraken out of the blue.
Michael Saylor, a Bitcoin bull, 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, noted that Kraken’s decision to settle was likely an economic decision rather than a legal one, and that such “settlements are not law”.
The SEC’s charge towards enforcing action against staking service providers has prompted Coinbase CEO Brian Armstrong to state 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 to charge Kraken has sparked a heated debate within the crypto community and beyond, as the SEC’s action could have a significant impact on the web3 space. NFTs, in particular, could be significantly affected by the SEC’s decision, as the lack of clear regulations could make it difficult for NFT creators and marketers to promote their work.
NFT marketing, in particular, has become increasingly popular in recent years, with many creators turning to Twitter to promote their work. Twitter NFT marketing has become a powerful tool for NFT creators, allowing them to reach a wider audience and gain exposure for their work.
However, the lack of clear regulations could make it difficult for NFT creators and marketers to promote their work. This could lead to a lack of confidence in the industry, as creators will be uncertain about the legality of their activities.
As such, it is essential that the SEC works with industry players to craft appropriate legislation that will ensure the future of NFTs and web3.
In the meantime, NFT creators and marketers may want to consider working with a web3 agency or NFT marketing agency to ensure that their activities are in compliance with the law. A web3 agency or NFT marketing agency can provide guidance on the legalities of NFT promotion and selling, helping creators and marketers to ensure that their activities are in compliance with the law.
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.
