Kraken’s New CEO Clears Stand on Registering With SEC

SEC Shuts Down Fraudulent Crypto Firm Over Ponzi Scheme
  • Jesse Powell stepped down and was replaced by COO Dave Ripley.
  • Kraken does not need to file with the U.S. SEC as per Ripley.

To the SEC’s dismay, Kraken’s new CEO has put forward the exchange’s stand. Kraken stated on September 21 that current CEO Jesse Powell will be stepping down and being replaced by COO Dave Ripley.

As time has passed since that declaration, Ripley has discussed Kraken’s compliance strategies.  Ripley was quoted as saying by Reuters that Kraken had no need to file with the U.S. Securities and Exchange Commission (SEC).

In defence of his company, Ripley said that Kraken does not trade in securities. There are “not any tokens out there that are securities that we’re interested in listing,” he said. He did say that Kraken may be “interested in that path” if a token of interest to them “happens to simultaneously be a security.”

Dilemma Over Securities

Ripley said that despite a separate lawsuit involving former Coinbase workers, Kraken has no intentions to delist any tokens that have been classified as securities. Similarly, Coinbase said that “no assets listed on our platform are securities,” denying that the assets in question qualify as securities.

The SEC has not taken a firm stance on whether or not cryptocurrencies should be classified as securities. Former SEC chairman Jay Clayton said in a remark from 2018 that Bitcoin and Ethereum are not securities since they did not actively seek out early public investments.

Other cryptocurrency assets are more likely to be securities since they depend on early investments or token sales. Chairman of the Securities and Exchange Commission Gary Gensler has said that the “vast majority” of cryptocurrencies are likely securities during a discussion at the Practising Law Institute.

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