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Crypto community responds to Kraken lawsuit, Deaton slams ‘dishonorable’ Gensler

Crypto community responds to Kraken lawsuit, Deaton slams 'dishonorable' Gensler


The crypto space has been making its feelings known about the latest blow from regulators in the United States, a lawsuit filed by the Securities and Exchange Commission (SEC) against crypto exchange Kraken. 

The lawsuit was filed on Nov. 20 based on the SEC’s allegations that Kraken has been operating as an unregistered exchange, broker, dealer and clearing agency and claiming that it is mixing customer assets with its own.

Since the news broke, the crypto community on social media, Kraken executives and prominent lawyers have been vocal in expressing their views on the SEC’s action. 

The day the news broke, Kraken founder Jesse Powell called the action an “assault on America” and named the SEC the U.S.’s “top decel.” Powell even warned other companies to depart from the U.S.

On Nov. 21, the current CEO of Kraken, Dave Ripley, took to X and said the company “strongly disagrees” with the SEC claims and plans to “vigorously” defend its position.

As an industry leader, we will stand up to these allegations and defend the crypto industry’s right to exist in the U.S.,” he said. Ripley said the “lack of regulatory clarity in the U.S.” will only be resolved by Congressional action. 

“[We] will continue to support these efforts to bring clarity and certainty to the chaotic environment that has been created in the U.S.”

Related: Kraken will share data of 42,000 users with IRS

Prominent crypto lawyer John Deaton also commented on the development, calling Gary Gensler, the current SEC chairman, a “despicable and dishonorable regulator.”

Deaton commented on Kraken’s decision in February to pay $30 million to the SEC in a settlement deal.

He said he believes Gensler does not care about any of the parties involved – employees or investors- and ended by…

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