Crypto Exchange Kraken Has No US SEC Registration Plans, Says Incoming CEO

Crypto Exchange Kraken Has No US SEC Registration Plans, Says Incoming CEO

The Kraken cryptocurrency exchange logo can be seen in this illustration, taken July 28, 2022. REUTERS/Dado Ruvic/Illustration

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Sept. 23 (Reuters) – Cryptocurrency exchange Kraken has no plans to remove tokens that the U.S. Securities and Exchange Commission has labeled securities, or register with the agency as a market intermediary, incoming chief executive officer Dave Ripley said in a statement. Thursday.

The stance of the San Francisco-based platform, which claims to have more than nine million customers, underscores the challenges the securities regulator faces in its bid to curb the crypto industry.

Kraken, which made headlines earlier this year when it rejected requests to block Russian users’ digital wallet addresses after the invasion of Ukraine, has long been a supporter of the libertarian values ​​associated with cryptocurrency. The new CEO has promised to keep up with the company culture.

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Kraken announced Wednesday that the often-controversial co-founder Jesse Powell would resign and Ripley, Kraken’s chief operating officer, will assume the role of CEO after the company hires a new COO.

Ripley will take the helm from Kraken not only at a time when the crypto market is facing a major defeat, with bitcoin falling nearly 60% this year, but also as the burgeoning industry is at odds with regulators like the SEC.

Despite reports the SEC is scrutinizing Coinbase for offering several tokens on its platform that the regulator identified as securities in a July insider trading lawsuit, Kraken has no plans to remove those tokens from its exchange, it said. ripley.

Ripley added that Kraken also sees no reason to register with the SEC as an exchange because his company does not list securities, despite calls from SEC chairman Gary Gensler to register crypto platforms.

“There are no tokens that are securities that we want to list,” he said. “There may be a new token that becomes interesting and at the same time is a security [and] in that case, we might be interested in that path.”

In a summer when once formidable crypto players like Celsius Network and Voyager Digital filed for bankruptcy, and others like Coinbase announced layoffs, Kraken has managed to avoid the market downturn and is now looking for opportunities.

“As far as there are opportunities for mergers and acquisitions in this environment, and maybe if it’s a company that’s actually going through a bankruptcy process, that’s a potential we can definitely consider,” Ripley said, adding that the company doesn’t have any yet. no movements.

However, he said Kraken would consider acquisitions that bolster its product and technology portfolio, especially as the exchange looks to broaden its offerings with an upcoming non-replaceable token platform and banking services for institutional clients.

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