Kraken Co-Founder Jesse Powell Blasts SEC as ‘Top Decel,’ Says Crypto Should Exit US

Securities and Exchange Commission
Last updated:
Author
Author
Trent Alan
About Author

Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Kraken website logo.
Kraken co-founder Jesse Powell strongly criticizes SEC after lawsuit, says crypto should leave the US. Image by IB Photography, Adobe Stock.

Kraken co-founder Jesse Powell did not mince words recently when he criticized the United States Securities and Exchange Commission (SEC) for suing his cryptocurrency exchange.

Powell denounced the regulator as the “USA’s top decel” and warned other crypto companies to leave the “US warzone” in order to avoid costly legal battles.

Kraken Co-founder Jesse Powell Takes Aim at the SEC

Powell’s scathing remarks came after the SEC filed a lawsuit against Kraken, alleging securities law violations.

This latest legal action comes just months after Kraken paid $30 million to settle previous claims that it offered unregistered securities through its staking services.

In a social media post, Powell blasted the SEC as a “top decel,” a derogatory tech term for someone who slows progress.

He claimed the agency was not satisfied with the $30 million settlement it extracted from Kraken in February.

Powell warned other crypto firms that this amount “buys you about 10 months before the SEC comes around to extort you again.”

Kraken Fights Back Against Regulator’s Lawsuit

The Kraken co-founder advised crypto companies to relocate outside of the US to avoid further troubles.

“If you can’t afford it, get your crypto company out of the US warzone,” he wrote online.

The SEC’s lawsuit alleges Kraken failed to register as a securities broker and comingled customer funds.

Kraken denies it listed unregistered securities and says the commingling claims relate to earned fees, not missing user funds.

Nevertheless, Powell’s inflammatory remarks reveal deepening tensions between crypto firms and regulators like the SEC.

This latest salvo suggests more legal battles ahead as the agency aggressively asserts its authority over the crypto space.

For Kraken and Powell, the SEC’s scrutiny is far from over, despite February’s multi-million dollar settlement. The exchange says it will defend its position in court.

But the co-founder’s call for a crypto exodus underscores fears that innovations could migrate abroad due to America’s strict regulatory climate.

As crypto continues its rise, the coming months will likely see increased clashes between innovators like Kraken and regulators–potentially deciding the future accessibility of cryptocurrencies for US citizens.

More Articles

Bitcoin News
BTC-e Operator Alexander Vinnik Returned to Russia in US Prisoner Swap
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-14 10:18:16
Altcoin News
Coinbase CEO Brian Armstrong Predicts 10% of Global GDP Will Be Crypto-Based by 2030
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-14 09:45:51
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors