Crypto Exchange Kraken Has No Plans for US SEC Registration, Says Incoming CEO

Crypto Exchange Kraken Has No Plans for US SEC Registration, Says Incoming CEO

The logo of the Kraken cryptocurrency exchange is seen in this illustration taken on July 28, 2022. REUTERS/Dado Ruvic/Illustration

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Sep 23 (Reuters) – Cryptocurrency exchange Kraken has no plans to delist tokens that the U.S. Securities and Exchange Commission has labeled as securities, or register with the agency as a market broker, the incoming chief executive said. , Dave Ripley, on Thursday.

The stance from the San Francisco-based platform, which claims to have more than nine million customers, underscores the challenges facing the securities regulator in its effort to control the cryptocurrency industry.

Kraken, which made headlines earlier this year when it rejected requests to block Russian users’ digital wallet addresses following the invasion of Ukraine, has long championed the libertarian values ​​associated with cryptocurrencies. Its new CEO has promised to keep the company culture on track.

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Kraken announced Wednesday that its often controversial co-founder Jesse Powell would resign and Ripley, Kraken’s chief operating officer, would take over as CEO after the company hires a new chief operating officer.

Ripley will take the helm of Kraken not only at a time when the crypto market is facing a major rout, with bitcoin down almost 60% this year, but also when the fast-growing industry has been at odds with regulators like the SEC.

Despite reports that the SEC is scrutinizing Coinbase for listing several tokens on its platform that the regulator identified as securities in an insider trading lawsuit in July, Kraken has no plans to remove those tokens from its exchange, it said. Ripley.

Ripley added that Kraken also sees no reason to register with the SEC as an exchange because his company does not offer securities, despite calls from SEC Chairman Gary Gensler for crypto platforms to register.

“There are no tokens out there that are securities that we are interested in listing,” he said. “There could be some new token out there that becomes interesting and is also simultaneously a security [and] in that case, we would potentially be interested in that path.”

In a summer when once-formidable players in the crypto market like Celsius Network and Voyager Digital filed for bankruptcy, and others like Coinbase announced layoffs, Kraken managed to avoid the market downturn and is now looking for opportunities.

“To the extent that there are opportunities for mergers and acquisitions in this environment, and perhaps if it is a company that is going through bankruptcy, then that is a potential that we should consider for sure,” Ripley said, and He added that the company has not made any move yet.

However, he said that Kraken would consider acquisitions that bolster its product and technology portfolio, particularly as the exchange looks to expand its offerings with an upcoming platform for non-fungible tokens and banking services for institutional clients.

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Reporting from Hannah Lang in Washington; Edited by Josie Kao

Our standards: the Thomson Reuters Trust Principles.

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