By Nathan Ferguson
The recently hired CEO of Kraken (a crypto exchange) has declared that he is not interested in getting his organization registered under the United States Securities & Exchange Commission (SEC) as well as purchasing any SEC-licensed tokens. In a Thursday report, Reuters stated that Dave Ripley finds it illogical to register his company with SEC, as it does not provide securities.
Dave Ripley Has No Intention to Get Kraken Registered under the SEC
He argued that he couldn’t find any token in the market which offers securities that’s why there is no need to purchase the available ones. Nevertheless, Dave Ripley didn’t eliminate security tokens from the list, arguing that there might appear some interesting tokens in the future with having the qualities of securities too. He would select that token, in his words.
The CEO and co-founder of Kraken Jesse Powell announced on 21st September that he is leaving the company after 11year-long service, citing the immense expansion of the organization and the pressure of raising it. Dave Ripley is going to succeed him as the head.
Ripley said, after the company’s declaration of changing headship, his aim is automated with Powell’s thought as he has decided to stay connected with the organization. The proclamation made by Dave Ripley is directly opposing the announcement of Gary Gensler (the chairman of SEC) about the crypto tokens as well as exchanges.
Gensler Says Majority of Cryptos Are Also Securities
In the session of the Senate Committee on Banking (that was held on 15th September), Gensler restated his viewpoint that most of the cryptocurrencies are simultaneously securities too but few intermediaries like broker-dealers, and exchanges, as well as the ones who had custodial functions (which conduct their dealings in securities), are compelled to get registration by the SEC.
Crypto mediators have to ultimately get registration from both the Commodity Futures Trading Commission as well as the Securities and Exchange Commission. This year, a legal investigation has already been filed against Coinbase due to the allegation of conducting trade of securities (which were unregistered).
Piper Alderman, along with Michael Bacina, stated in an interview that this case will leave extremely critical effects on the token projects as well as exchanges without discrimination of tokens and securities. This year, Gensler got criticized firstly for his regulatory plan and secondly for not taking action against renowned crypto exchanges.