The founder of the crypto exchange Kraken claims the Biden administration’s approach is “diminishing U.S. competitiveness” in the crypto market.
Jesse Powell, the founder and former CEO of the crypto exchange Kraken, has donated $1 million in Ethereum (ETH) to former President Donald Trump as the presidential elections draw near. In a June 28 post on X, Powell suggested that his decision was influenced by a hawkish stance toward the crypto industry from Senator Elizabeth Warren and SEC Chair Gary Gensler.
The Kraken founder also highlighted that President Joe Biden’s administration “permitted a campaign of unchecked regulation by enforcement,” asserting that this approach is “diminishing U.S. competitiveness while other major economies worldwide advance clear regulations for digital assets.”
“I am thrilled to join other leaders from our community in supporting the only pro-crypto major party candidate in the 2024 Presidential election, ensuring that the United States continues to lead in blockchain technology.” Jesse Powell
Kraken and the SEC have a long history of intense conflicts due to the ambiguous regulatory framework for crypto in the U.S. In February 2023, Kraken settled with the SEC for $30 million regarding a staking feature offered to customers, which the SEC classified as unregistered securities.
In late 2023, the Securities and Exchange Commission (SEC) took legal action against the companies behind the cryptocurrency exchange Kraken. The regulatory body filed a lawsuit against Payward and Payward Ventures, alleging that these parent organizations had been running an unauthorized digital asset trading platform.
According to the SEC’s claims, Kraken had been functioning without proper registration as a securities exchange, broker, dealer, and clearing agency since 2018. The lawsuit contends that this purportedly illegal operation allowed Kraken to generate substantial revenue, reportedly amounting to hundreds of millions of dollars.
This legal challenge came despite previous attempts to resolve regulatory issues, highlighting the ongoing tensions between cryptocurrency businesses and financial regulators.
According to the regulatory body’s accusations, Kraken allegedly engaged in practices that blurred the lines between customer funds and company assets. This purported commingling of finances could potentially expose both the exchange and its users to financial risks.
The regulatory agency suggests that such practices might lead to monetary losses for Kraken’s clientele as well as the company itself. As of now, the legal proceedings initiated by the SEC against Kraken remain unresolved, with the outcome yet to be determined by the court.
Jesse Powell joins the ranks of crypto executives supporting the Republican presidential candidate. Tyler and Cameron Winklevoss, founders of the Gemini crypto exchange, have also individually donated $1 million in Bitcoin (BTC) to Donald Trump and committed to voting for him in November.
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