SEC is ‘open to discussion’ when it comes to crypto. The aggressive posture taken by certain crypto companies toward authorities, according to Kraken’s Marco Santori.
“You’re living in a dream world if you don’t believe this business will face harsher, more Wall Street-like regulation from authorities in the United States and abroad”, Santori said on Bloomberg’s QuickTake Stock show on Thursday.
SEC’s aggressive approach towards Coinbase
Santori’s remarks come after the SEC threatened to sue Coinbase, a well-known crypto exchange, over a crypto yield program. Which the SEC classified a security earlier this month. The action prompted the exchange’s CEO, Brian Armstrong, to take a confrontational and recalcitrant position on social media. However, the exchange has now confirmed that the program in question would be scrapped, as requested by the SEC.
“I’ve absolutely followed Brian’s tweets. And I’ll say that look, you’re simply not being honest with yourself with the crypto community if a small piece of you doesn’t believe he’s stating what a lot of people are thinking,” Santori said in response to the events. He quickly shifted gears, though. And went out of his way to explain the more realistic objective he’s pursuing at Kraken.
“With regulators, I can’t endorse that attitude. It has never worked in the past, and we’ve found the SEC to be amenable to conversation in our experience.”
The SEC intend to implement regulatory reforms this year
Financial authorities in the United States, led by SEC Chair Gary Gensler, have stated that they plan to implement a slew of regulatory reforms this year affecting token sales. As well as decentralised finance, stablecoins, custody, exchange-traded funds, and lending platforms. Despite his harsh tone, Gensler has urged industry stakeholders to work with the agency in the future. While the regulatory landscape is still changing, the crypto markets remain extremely sensitive to the potential consequences of each regulator’s crypto-related public actions.