Crypto community responds to Kraken lawsuit, Deaton slams ‘dishonorable’ Gensler

cointelegraph.com:

The crypto space has been making its feelings known about a lawsuit filed by the United States Securities and Exchange Commission (SEC) against the crypto exchange Kraken. 

The lawsuit, filed on Nov. 20, is based on the SEC’s allegations that Kraken has been operating as an unregistered exchange, broker, dealer and clearing agency and claims that it mixes customer assets with its own.

Since the news broke, the crypto community on social media, Kraken executives and prominent lawyers have been vocal in expressing their views on the SEC’s action. 

Kraken founder Jesse Powell called the action an “assault on America” and called the SEC the U.S.’s “top decel.” Powell even warned other companies to depart the country.

On Nov. 21, the current CEO of Kraken, Dave Ripley, took to X (formerly Twitter) and said the company “strongly disagrees” with the SEC claims and plans to “vigorously” defend its position.

We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.

As we have seen before, the SEC argues that @krakenfx should “come in and register” with the agency, when there is no clear path to…

As an industry leader, we will stand up to these allegations and defend the crypto industry’s right to exist in the U.S.,” he said. Ripley said that the “lack of regulatory clarity in the U.S.” will only be resolved by Congressional action, adding:

Related: Kraken will share data of 42,000 users with IRS

Prominent crypto lawyer John Deaton also commented on the development, calling SEC Chair Gary Gensler a “despicable and dishonorable regulator.”

Deaton also commented on Kraken’s decision in February to pay $30 million to the SEC in a settlement deal.

@GaryGe