On February 20th, Jesse Powel, the CEO of Kraken Cryptocurrency Exchange and co-founder, speculated that regulators are to blame for the current cryptocurrency crisis. Replying to a tweet on his Twitter account, he postulated that governments have been reluctant to act on bad actors, allowing them time and room enough to become established since “it serves their agenda.”
Regulators Have Been Slow in Considering Community Requests
Although the crypto industry had existed since 2009, when Bitcoin first emerged, it is still in its infancy. Nonetheless, due to ICO mania in 2017-2018, cryptocurrencies have begun achieving widespread adoption. In just five years, we’ve seen incredible progress and modernization within fundraising techniques such as DeFi protocols and NFT projects – two of the most impressive developments yet!
Despite the increasing prevalence of tokens and projects, experts have noted that regulators responsible for creating an equitable environment and safeguarding investors need to be more active to keep up. To date, policymakers still need to establish drafts that unambiguously classify cryptocurrencies in most countries.
US Regulators Are Being Pretty Tough Towards The Crypto World.
For clarity, the United States Securities and Exchange Commission (SEC) has classified Bitcoin as a commodity. Additionally, several SEC officials have stated that most cryptocurrencies are not registered securities. Ripple Inc., a blockchain company, is currently in litigation with the SEC after its management was accused of offering XRP to investors without proper registration as a security.
Last week, the United States Security and Exchange Commission (SEC) released a Wells notice to Paxos, issuing them with a warning that their stablecoin BUSD is an unregistered security. Jesse believes regulators must take action now instead of waiting for something drastic to happen before reacting – thereby making all cryptocurrency projects appear as “the enemy.” He wants there to be clearer rules and regulations in place surrounding the crypto industry, particularly when it comes to exchanges and stablecoin issuers.Jesse Powell, CEO of Kraken, has warned the industry that bad actors already have a significant edge due to their capability to draw customers and venture capital away from good projects. This issue was highlighted by Kraken’s recent SEC settlement for $30 million over its US-based crypto staking services. As part of the agreement with the regulator, these offerings were terminated in America.
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