Kraken Doesn’t Plan to Register With U.S. SEC, Says Incoming CEO

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Key Takeaways:

  • Ripley states that Kraken does not intend to delist tokens the SEC has labeled as securities.
  • Kraken founder Jesse Powell decided to step down four days back, leaving the post to Ripley.

Leading crypto Kraken has no plans to register with the U.S. Securities and Exchange Commission(SEC), said the company’s incoming chief executive officer(CEO) Dave Ripley. He further added that Kraken also did not intend to delist tokens the SEC has labeled as securities.

“There are not any tokens out there that are securities that we’re interested in listing,” he said. Ripley has, however, clarified that the firm hasn’t completely ruled out listing securities. “There could be some new token out there that becomes interesting and also happens to simultaneously be a security; in that case, we would potentially be interested in that path.”

Ripley has added that irrespective of reports that the SEC is after Coinbase for listing several tokens on its platform the watchdog identified as securities in an insider trading case, Kraken has no plans to remove those tokens from its platform.

Talking about his company’s future, the incoming CEO said Kraken would consider acquisitions that improve its product and tech portfolio, mainly as the exchange is looking to broaden its offerings with a forthcoming platform for non-fungible tokens(NFTs) and banking services for institutional clients.

The CEO post became vacant after Kraken founder Jesse Powell decided to step down four days back. Powell will, however, become chairman of the company and remain Kraken’s largest shareholder.

In the official company statement announcing his resignation, Ripley stated his goals going forward were “in lockstep” with Powell’s and also noted that Powell is planning “to stay very engaged with the company.”

In his announcement, Kraken also credited Ripley for growing the company from 50 to over 3,000 employees, completing over 16 acquisitions, and for securing pivotal regulatory licenses and partnerships.

SEC Chairman Gary Gensler has always viewed cryptocurrencies and digital assets with suspicion. Recently, Gensler reinstated his belief that most cryptocurrencies are securities. He has asked SEC staff to “work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.”

Gensler pointed out that many intermediaries, including broker-dealers, exchanges, and those with custodial functions, deal in securities and should also be registered with the SEC “in some capacity.” Last week, Gensler also commented that proof-of-stake cryptocurrencies may be securities.

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Saniya Raahath
Saniya Raahath

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