Hester Peirce shared her opinion on the latest crackdown by the SEC agency on the Kraken Crypto exchange.
On 10 Feb 2023, The United States Securities and Exchange Commission (SEC) announced that the agency slammed the Crypto staking services provided by the Kraken crypto exchange with a $30 million fine. As per the SEC announcement, Crypto staking services by the Kraken exchange were similar to unregistered securities offerings. The majority of the Crypto industry experts noted that SEC enforcement action was based on the Kraken Crypto staking program, which was intended as an crypto interest service for the customers.
Just after the SEC & Kraken case settlement news, Hester Peirce, the commissioner at the SEC Agency & popularly known as Crypto mom in the Crypto sector, shared her point of view on the SEC ruling on the Kraken exchange.
The SEC Commissioner said that the recent SEC vs Kraken case was the latest example of regulation-by-enforcement by the SEC agency in the Crypto sector.
She also confirmed that the SEC agency had no meeting with any experts in the Crypto sector before its regulatory action on Kraken’s staking services.
The SEC official also noted that the SEC body was aware of the Crypto staking system & its importance in the Crypto & blockchain technology, So its action on the Kraken exchange was arbitrary.
The statements passed by the SEC Commissioner are hinting that the SEC agency wants to initiate a very big war against Kraken like big crypto companies, because Kraken company provides direct staking services for Crypto Investors in the US, after Coinbase.
Read also: PayPal stops its Stablecoin Project