December 9, 2022

Kraken does not intend to obtain a license to trade securities in the SEC

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Kraken does not intend to obtain a license to trade securities in the SEC

The new CEO of Kraken said that since the exchange does not deal in securities, it does not require registration with the regulator. However, this position may change in the future.

CEO of cryptocurrency exchange KrakenDave Ripley emphasized that the site does not intend to delist digital assets that the US Securities and Exchange Commission (SEC) considers securities subject to regulatory oversight. However, he did not rule out the official listing of share tokens.

“A new token that is interesting for the exchange and at the same time recognized as a security could force us to obtain a license,” Ripley said.

He added that his goals are in line with the plansformer Kraken CEO and co-founder Jesse Powell. According to Ripley, Powell plans to continue to "remain actively involved in the work of the company." Recall that Powell resigned in September, after 11 years at Kraken, citing the company's large growth costs that are out of control.

Ripley's statement was a kind of challengeSEC Chairman Gary Gensler, who stated that after the transition of Ethereum to Proof-of-Stake (PoS), ETH can be considered as a security. This angered Ripple founder and CEO Brad Garlinghouse. He disagrees that after the merger, ETH can be considered an unregistered security.

Australian digital asset lawyer fromof Piper Alderman, Michael Bacina expressed the view that this SEC announcement could have a “serious deterrent effect” on cryptocurrency exchanges and token projects “regardless of whether the SEC recognizes tokens as securities.”