Crypto exchange Kraken has no U.S. SEC registration plans, says incoming CEO

The logo of cryptocurrency exchange Kraken is seen in this illustration taken 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 to register with the agency as a market intermediary, new chief executive Dave Ripley said Thursday.

The position of the San Francisco-based platform, which claims to have more than nine million customers, underscores the challenges the securities regulator faces in its efforts to rein in the crypto industry.

Kraken, which made headlines earlier this year by refusing requests to block Russian users’ digital wallet addresses after the invasion of Ukraine, has long championed the libertarian values ​​associated with cryptocurrency. Its new CEO has promised to stay the course on the culture of the company.

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Kraken announced Wednesday that its often controversial co-founder, Jesse Powell, will step down and Ripley, Kraken’s chief operating officer, will assume the role of 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 nearly 60% this year, but also as the rapidly growing industry is at odds. with regulators like the SEC.

Despite reports that the SEC is reviewing 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. of his trade, Ripley said.

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 exchanges. -cryptographic forms register.

“There are no tokens there that are securities that we want to list,” he said. “There could be a new token out there that gets interesting and simultaneously happens to be a security [and] in this case, we would potentially be interested in this route.

In a summer where once formidable crypto market players 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 considering opportunities.

“To the extent that there are M&A opportunities in this environment, and perhaps if this is a company that is currently going through a bankruptcy process, then this is a potential that we have to consider with certainty,” Ripley said, adding that the company hasn’t made any moves yet.

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

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Reporting by Hannah Lang in Washington; Editing by Josie Kao

Our standards: The Thomson Reuters Trust Principles.

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