Dave Ripley states that he doesn’t see any reason to register Kraken as an exchange with the SEC because Kraken is not offering securities to users. Kraken’s new CEO has said that he does not plan to register the company with Securities and Exchange Commission (SEC), nor delist any tokens that the SEC has classified as securities.
According to a Reuters report, the new CEO Dave Ripley stated that he does not see a reason for an exchange registration with the SEC because it doesn’t offer securities.
He stated that there are no tokens that could be considered securities and that they are not worth listing.
If Kraken find an awesome project that is a security then they will register with the SEC
He did not rule out security tokens being listed, but he noted that there could be “some new token out that is interesting and also happens simultaneously to be a security. In that case, we would potentially want to pursue that path.”
After 11 years as Kraken’s co-founder, Jesse Powell decided to retire on September 21 citing the enormous growth of the company along with the immense strain on his ability to manage it all.
Ripley stated that his goals for the future were “in lockstep with Powell’s” and noted that Powell plans to “stay very engaged with the company”.
Ripley’s comments on crypto assets seem to be directly opposed to Gary Gensler, the Chairman of SEC. Gensler recently made clear his views on crypto tokens and exchanges.
Gensler reiterated the position he had made in a Sept. 15 Senate Committee on Banking. He stated that most cryptocurrencies are securities, and that many intermediaries such as brokers-dealers, exchanges, and custodial function holders, deal with securities and should be registered by the SEC “in a certain capacity.
Crypto intermediaries might need to one-day register with both SEC and Commodity Futures Trading Commission, (CFTC),” since there are already dual registrants.
Coinbase was allegedly trading in unregistered securities earlier this year.
Michael Bacina, an Australian lawyer for digital assets, told Cointelegraph that the case could have a serious and chilling impact on crypto exchanges.
Gensler has come under heavy criticism for both his approach to crypto regulation as well as for its inaction against “big-fish” crypto exchanges.
The United States Treasury Department’s Office of Foreign Assets Control has criticized Kraken for allegedly allowing users located in Iran and other countries to purchase and sell crypto. This could be a violation of U.S. sanctions.