Recently, Charles Hoskinson, the Founder of Cardano’s, commented on Gary Gensler’s address to CNBC regarding cryptocurrencies. Unfortunately for Kraken crypto exchange, they had to shut down their staking operations due to being faced with charges from the SEC and paying a settlement fee of $30 million.
“There Is No Way Crypto Exchanges Can Be SEC Registered”
The SEC recently disclosed that the exchange hadn’t registered its staking program, which permits investors to gain a return. According to Gensler, all these cryptocurrency exchanges can register by completing a form on the Securities and Exchange Commission’s website. After hearing about this revelation from Gensler in his speech, Kraken CEO Jesse Powell tweeted with astonishment: “Oh man… All I had to do was fill out a simple form on their website AND inform people of where the staking rewards come from?” Cardano’s founder retweeted Powell’s tweet and expressed shock at what he heard during Gersler’s speech.
Charles Hoskinson proclaimed that there is no method of registering or adhering to cryptocurrency staking with the SEC, and what Gensler stated was a fallacy. A few Twitter users criticized Gary Gensler’s efforts in protecting retail investors from the events involving Terra, FTX, BlockFi, Celsius, Voyager, HodlNaut, and others too. Further, he noted that all he did was protect retail investors from earning money using these services.
It Wasn’t Just Cardano’s Founder Who Reacted to the SEC
Kraken was previously compelled to suspend staking services for U.S users and pay an exorbitant $30 million by the Securities and Exchange Commission (SEC). The cause of disagreement between Kraken and the SEC lay primarily on inadequate warnings granted to users about potential risks involving cryptocurrency staking.
Jesse Powell, the founder and head of the exchange, responded to Gensler’s call with a sarcastic remark. He expressed confusion about how he was expected to fill out an SEC form to avoid crippling fines amounting to tens of millions or even seeing his business line being shut down simply for warning users about staking rewards coming from staking.
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