The creator of the crypto platform Kraken has criticized the Biden administration’s strategy, stating that it is harming the competitiveness of the United States in the crypto market.
Jesse Powell, the originator and former head of the crypto exchange Kraken, has given $1 million in Ethereum (ETH) to former President Donald Trump as the presidential election approaches. In a post on Jun. 28, Powell suggested that his donation was a response to the negative stance towards the industry from Democrat Elizabeth Warren and the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler.
Powell highlighted that President Joe Biden’s administration has allowed excessive regulation through enforcement, which is undermining U.S. competitiveness while other major economies are establishing clear regulations for digital assets.
Kraken has had numerous disputes with the SEC due to the unclear regulatory environment for crypto in the U.S. In February 2023, Kraken reached a $30 million settlement with the SEC over an unregistered staking feature it offered to customers.
Despite this settlement, in November 2023, the SEC filed a lawsuit against Kraken’s parent companies, Payward and Payward Ventures, for allegedly operating an unregistered online trading platform. The lawsuit claims that Kraken has been operating illegally as a securities exchange, broker, dealer, and clearing agency since 2018, making hundreds of millions of dollars.
The SEC also alleges that Kraken may have commingled client funds with its own assets, potentially resulting in losses for both parties. The legal proceedings are ongoing.
Jesse Powell joins a growing list of crypto executives supporting the Republican presidential candidate. The founders of the Gemini crypto exchange, Tyler and Cameron Winklevoss, have each donated $1 million in Bitcoin (BTC) to Donald Trump and have pledged to vote for him in November.
For more information on the crypto regulatory approach, stay tuned for updates on the upcoming presidential debate.