“Paternalistic and Lazy”: SEC Commissioner Blasts Agency Crackdown on Kraken

“Paternalistic and Lazy”: SEC Commissioner Blasts Agency Crackdown on Kraken

Business
March 28, 2023 by Admin
115
What motivates SEC’s Commissioner to criticize the agency’s actions against Kraken? “Paternalistic and Lazy”: SEC Commissioner Blasts Agency Crackdown on Kraken Earlier this week, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce attacked the agency’s decision to crack down on Kraken, the crypto exchange platform provider. On a video call with the Council on
660 paternalistic and lazy sec commissioner blasts agency crackdown on kraken

What motivates SEC’s Commissioner to criticize the agency’s actions against Kraken?

“Paternalistic and Lazy”: SEC Commissioner Blasts Agency Crackdown on Kraken

Earlier this week, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce attacked the agency’s decision to crack down on Kraken, the crypto exchange platform provider. On a video call with the Council on Foreign Relations, Peirce called the agency’s actions “paternalistic” and “lazy”.

The SEC has reportedly been asking to conduct an investigation with Kraken since June 2019. At the center of the investigation is the potential for market manipulation on Kraken’s platform. Peirce notes that the investigation has been going on for a year and critics of the SEC have grown more and more frustrated with the agency’s lack of progress. Peirce asserts that the investigation is impacting Kraken’s ability to expand into other jurisdictions and that it has had a “chilling effect” on the crypto world.

When asked about the SEC’s response, Peirce noted that the agency is “moving targets” when it comes to regulating technology firms and making sure their products meet the regulations. She said that the agency is often “slow on the uptake” and that it should be embracing technological advancements in order to keep the markets competitive. Peirce believes that the SEC should be pushing to innovate, rather than “bringing enforcement actions against those who seek to innovate in the space”.

Kraken’s CEO, Jesse Powell, has also taken issue with the SEC’s investigation. He tweeted: “You can’t describe the current state of the SEC as anything less than stalled. [The] SEC has had numerous opportunities to demonstrate their commitment to innovation and protect consumers. Instead, they remain content with a reactive approach, cracking down on the innovators.”

The SEC’s crackdown on Kraken has been a contentious issue in the crypto and blockchain space. Critics of the agency have argued that the SEC’s lack of regulatory clarity has been hindering innovation and investment. The agency has yet to issue a clear framework for regulating the new technology and industry.

Peirce’s criticism may be an indication that the SEC is finally ready to move forward with a more comprehensive regulatory framework for crypto and blockchain-related activities. Whether the agency will take Peirce’s advice and embrace innovation, however, remains to be seen.