Kraken CEO, Jesse Powell, alleges that regulators let bad guys grow bigger and collapse to serve their agenda. This is a big claim, but it’s plausible, considering that the authorities have always been against crypto. Jesse says that the bad guys always have a major competitive advantage and end up hurting a lot of users, burning billions of dollars and sucking venture capital funds which would have been used judiciously otherwise.
Kraken CEO’s major claim on US regulators
It’s safe to say that Jesse Powell is not at all happy with the current state of crypto regulation in the United States. He shared his theory on Twitter about how regulators know about the bad guys but do not bust them when they are small. Once these bad guys grow big and blow up, it helps regulators serve their own agendas. What are the agendas he is talking about? Let’s see.
- Destroy venture capital funds and resources in the crypto ecosystem, which will slow down the industry’s growth.
- Reduce the adoption of crypto by letting investors get burned when in reality, they should be protecting them.
- Allow them to set precedence with the bad cases and attack good players in the industry.
He then said that for regulators, the good guys are the problem. In the case of bad guys, they either blow up or are used as an example to go after the good ones. Or they run long enough to kill the competition and do the regulator’s job for them.
The authorities are playing around the bush.
The most common excuse the authorities give for not being able to spot any bad players and catching them before they grow too big is the lack of enough funding. They will keep fishing for more funds and asking for a larger budget. However, Jesse Powell says that the facts do not support their arguments, and instead of facing the consequences for their lack of effort or ability, they are often given more budget.
Jesse Powell also said that the authorities ignored his warnings about the illegal activities in the crypto space concerning FTX. However, they ignored his words for years and how have charged Kraken with enforcement action.
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Also Read: Crypto scam revenue plummeted in 2022 by 46%: Chainalysis.
