{"id":25378,"date":"2023-11-21T11:20:04","date_gmt":"2023-11-21T11:20:04","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-community-responds-to-kraken-lawsuit-deaton-slams-dishonorable-gensler\/"},"modified":"2023-11-21T11:20:06","modified_gmt":"2023-11-21T11:20:06","slug":"crypto-community-responds-to-kraken-lawsuit-deaton-slams-dishonorable-gensler","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-community-responds-to-kraken-lawsuit-deaton-slams-dishonorable-gensler\/","title":{"rendered":"Crypto community responds to Kraken lawsuit, Deaton slams \u2018dishonorable\u2019 Gensler"},"content":{"rendered":"
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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.\u00a0<\/p>\n
The lawsuit, filed on Nov. 20, is based on the SEC\u2019s 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. <\/p>\n
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\u2019s action.\u00a0<\/p>\n
Kraken founder Jesse Powell called the action an \u201cassault on America\u201d and called the SEC the U.S.\u2019s \u201ctop decel.\u201d Powell even warned other companies to depart the country.<\/p>\n
On Nov. 21, the current CEO of Kraken, Dave Ripley, took to X (formerly Twitter) and said the company \u201cstrongly disagrees\u201d with the SEC claims and plans to \u201cvigorously\u201d defend its position. <\/p>\n
\nWe strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.<\/p>\n
As we have seen before, the SEC argues that @krakenfx<\/a> should \u201ccome in and register\u201d with the agency, when there is no clear path to\u2026<\/p>\n
\u2014 Dave Ripley (@DavidLRipley) November 21, 2023<\/a><\/p><\/blockquote>\n
As an industry leader, we will stand up to these allegations and defend the crypto industry\u2019s right to exist in the U.S.,\u201d he said. Ripley said that the \u201clack of regulatory clarity in the U.S.\u201d will only be resolved by Congressional action, adding:<\/p>\n
\u201c[We] will continue to support these efforts to bring clarity and certainty to the chaotic environment that has been created in the U.S.\u201d<\/p><\/blockquote>\n
Related: <\/em><\/strong>Kraken will share data of 42,000 users with IRS<\/em><\/strong><\/em><\/strong><\/p>\n
Prominent crypto lawyer John Deaton also commented on the development, calling SEC Chair Gary Gensler a \u201cdespicable and dishonorable regulator.\u201d<\/p>\n
Deaton also commented on Kraken\u2019s decision in February to pay\u00a0$30 million to the SEC in a settlement deal.<\/p>\n
\n@GaryGensler<\/a> is a despicable and dishonorable regulator. He knew that @krakenfx<\/a> believed it was buying peace for the $30M. I know some people are critical of it\u2019s choice to settle and pay the $30M. I wanted them to fight as well. But when you decide to fight, $30M takes you only\u2026 https:\/\/t.co\/WeF4YTMfip<\/p>\n
\u2014 John E Deaton (@JohnEDeaton1) November 21, 2023<\/a><\/p><\/blockquote>\n
Deaton said he believes Gensler does not care about any of the parties involved \u2014 employees or investors \u2014 and said, \u201che\u2019s a disgrace, and I can\u2019t wait to see him go down.\u201d<\/p>\n
When asked if Kraken stands a chance against the SEC in court for round two, crypto criminal defense lawyer Carlo D\u2019Angelo said<\/a>\u00a0he doesn\u2019t see the odds being in the SEC\u2019s favor.\u00a0<\/p>\n
\u201cSimilar arguments have been tried and failed in other circuits. The judge in the Kraken case will likely look closely at those decisions. Judges like consistent precedents\u2014less chance of getting reversed on appeal.\u201d<\/p><\/blockquote>\n
One X user responded<\/a>\u00a0by saying,\u00a0\u201cJust because the sec says something, [doesn\u2019t] make it true! Get them to explain in detail to the court how to come on and register and operate normally.\u201d<\/p>\n
The SEC has received a lot of backlash for its harsh crackdown on crypto, particularly as the industry is operating in a legal system that has not yet provided clear legislation for cryptocurrencies and exchanges working with digital assets. <\/p>\n
However, the crypto space also has allies on the regulatory side. U.S. Senator Cynthia Lummis posted a response to the lawsuit, saying the SEC cannot continue to \u201crule by enforcement.\u201d<\/p>\n
\nThe SEC cannot continue ruling by enforcement. My statement on the Kraken lawsuit below: pic.twitter.com\/J3qhzU624N<\/a><\/p>\n