{"id":607366,"date":"2023-02-12T23:49:24","date_gmt":"2023-02-13T05:49:24","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/12\/sec-guidance-is-needed-says-jesse-powell-after-kraken-settlement\/"},"modified":"2023-02-12T23:49:24","modified_gmt":"2023-02-13T05:49:24","slug":"sec-guidance-is-needed-says-jesse-powell-after-kraken-settlement","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/12\/sec-guidance-is-needed-says-jesse-powell-after-kraken-settlement\/","title":{"rendered":"SEC Guidance is Needed Says Jesse Powell After Kraken Settlement"},"content":{"rendered":"<div id=\"page\">\n<div id=\"content_box\">\n<header>\n<div>\n<p><img loading=\"lazy\" alt src=\"https:\/\/secure.gravatar.com\/avatar\/41169a86822e6585e2f87627f7d7ef3a?s=32&#038;d=mm&#038;r=g\"  height=\"32\" width=\"32\" decoding=\"async\"><\/p>\n<p><span><span>By <a href=\"https:\/\/fullycrypto.com\/author\/mahu_bs\" title=\"Posts by Mark Hunter\" rel=\"author\">Mark Hunter<\/a><\/span><\/span><\/p>\n<p><span><\/p>\n<p>3 days ago<span>Fri Feb 10 2023 10:37:23<\/span><\/p>\n<p><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/header>\n<p><img loading=\"lazy\" width=\"1300\" height=\"890\" src=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/02\/SEC-Guidance-is-Needed-Says-Jesse-Powell-After-Kraken-Settlement.png\" alt=\"SEC-Guidance-is-Needed-Says-Jesse-Powell-After-Kraken-Settlement\" decoding=\"async\" title data-layzr=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/02\/SEC-Guidance-is-Needed-Says-Jesse-Powell-After-Kraken-Settlement.png\">\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<div>\n<p><span><span>Reading Time: <\/span> <span>2<\/span> <span>minutes<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\"><span>Kraken CEO Jesse Powell has called for guidance from the SEC after agreeing a $30 million settlement<\/span><\/li>\n<li aria-level=\"1\"><span>Kraken will cease its staking-as-a-service platform for U.S. customers after the SEC raised security concerns<\/span><\/li>\n<li aria-level=\"1\"><span>The news comes less than a day after warnings that the SEC wants to ban staking<\/span><\/li>\n<\/ul>\n<p><span>Kraken\u2019s outgoing CEO Jesse Powell has said that the Securities and Exchange Commission (SEC) needs to offer guidance on the status of <\/span><a href=\"https:\/\/fullycrypto.com\/cryptocurrency-news\"><span>cryptocurrency<\/span><\/a><span> products, following Kraken\u2019s $30 million settlement over its staking-as-a-service program. The news that Kraken had settled with the SEC and agreed to terminate its service for U.S. customers over concerns that it represents an unregistered sale of securities came less than 24 hours after Coinbase CEO Brian Armstrong warned that the <\/span><a href=\"https:\/\/fullycrypto.com\/sec-said-to-be-considering-retail-staking-ban\"><span>agency is looking to ban staking<\/span><\/a><span> outright along the same grounds.<\/span><\/p>\n<h2><span>Kraken Pays $30 Million in SEC Settlement<\/span><\/h2>\n<p><span>Armstrong\u2019s comments yesterday barely had time to percolate before Kraken had announced that it had come to a settlement with the SEC where it would cease its staking-as-a-service program immediately in the U.S. and pay a $30 million settlement fee, without admitting guilt in the matter. A second Kraken subsidiary will handle all staking for non-U.S. entities, while all U.S. stakers will have their funds unstaked and returned to them.<\/span><\/p>\n<p><span>Powell took to Twitter to respond to comments from individuals such as SEC commissioner Hester Pierce, pro-crypto congressman Tom Emmer, and Coinbase\u2019s chief legal officer Paul Grewal, where he urged the SEC to offer up-front guidance to crypto companies rather than adopting a \u2018try it and see what you get\u2019 approach:<\/span><\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">Thank you. Some guidance would be appreciated. The \u201cThis is wrong but I won\u2019t tell you how to do it right. Want to find out if X works? Try it and see what happens.\u201d approach does not help the industry nor consumers. We aren\u2019t anti-regulation but we need a clear path to operate. <a href=\"https:\/\/t.co\/KmOVkUi49r\">https:\/\/t.co\/KmOVkUi49r<\/a><\/p>\n<p>\u2014 Jesse Powell (@jespow) <a href=\"https:\/\/twitter.com\/jespow\/status\/1623811805289099265?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p>\n<\/blockquote>\n<p><span>Others have complained of this approach by the SEC in the past, most notably Grewal and Armstrong, who faced the SEC\u2019s wrath over their intended Coinbase Lend program, which <\/span><a href=\"https:\/\/fullycrypto.com\/coinbase-lend-ditched-after-sec-threat\"><span>died when the SEC threatened legal action<\/span><\/a><span> after Coinbase had gone to them for advice.<\/span><\/p>\n<h2><span>IRS Demands Kraken Books<\/span><\/h2>\n<p><span>Things got worse for Kraken just minutes after news of the SEC settlement was made public \u2013 the exchange is also the <\/span><a href=\"https:\/\/www.coindesk.com\/policy\/2023\/02\/09\/irs-seeks-court-approval-to-identify-kraken-crypto-customers\/\" target=\"_blank\" rel=\"nofollow noopener\"><span>subject of enforcement action<\/span><\/a><span> by the Inland Revenue Service (IRS) for failing to provide it with certain information:<\/span><\/p>\n<blockquote>\n<p><span>Despite discussions between the parties, Payward Ventures Inc. &#038; Subsidiaries has failed to comply with the summons and has not produced the books, records, papers and other data demanded in the summons. Payward Ventures Inc. &#038; Subsidiaries\u2019 failure to comply with the summons continues to this date.<\/span><\/p>\n<\/blockquote>\n<p><span>The intention is to boost an IRS investigation into the \u201cincome tax liability of U.S. persons who conducted transactions in cryptocurrency for the years ended December 31, 2016, 2017, 2018, 2019, and 2020.\u201d<\/span><\/p>\n<p><span>Such a move will concern those who traded around these times and didn\u2019t keep records or pay taxes, thinking that it would never come back to get them, as this action shows that the IRS is taking prior crypto activities very seriously.<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/fullycrypto.com\/sec-guidance-is-needed-says-jesse-powell-after-kraken-settlement?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=sec-guidance-is-needed-says-jesse-powell-after-kraken-settlement\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Mark Hunter<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mark Hunter3 days agoFri Feb 10 2023 10:37:23 Reading Time: 2 minutes Kraken CEO Jesse Powell has called for guidance from the SEC after agreeing a $30 million settlement Kraken will cease its staking-as-a-service platform for U.S. customers after the SEC raised security concerns The news comes less than a day after warnings that<\/p>\n","protected":false},"author":1,"featured_media":607367,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31012,1310],"tags":[],"class_list":{"0":"post-607366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-guidance","8":"category-needed"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=607366"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/607366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/607367"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=607366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=607366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=607366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}