Jesse Powell, Kraken‘s founder, asserts that the crypto space has become more equitable, but warns of persisting challenges to the industry’s credibility.
In the wake of Binance’s $4.3 billion settlement with the U.S. Department of Justice and Changpeng Zhao stepping down as CEO, Powell noted a shift toward a “bit more fair” crypto environment.
Powell, who relinquished his Kraken CEO role in September 2021, emphasizes the industry’s need for self-regulation, emphasizing the unlikelihood of prompt protection.
“Emerging threats to the industry’s reputation pose a risk, inviting governments to cast blame on crypto and tighten regulations.”
Reflecting on Binance’s swift global expansion, Powell expressed concerns over dwindling market share and unbalanced regulatory enforcement.
While Kraken, akin to Binance and Coinbase, faces an SEC lawsuit alleging unregistered securities exchange operation and fund co-mingling, Powell criticized the SEC’s actions as further adversity.
“Binance’s future seems uncertain, despite CEO Richard Teng’s confidence in its financial health post the $4.3 billion penalty, with predictions by Matrixport suggesting potential market competition impacts by 2026.”
