Kenne Michael 
Jesse Powell, co-founder of Kraken, lauded the outcome of the Binance investigation in an X (previously Twitter) post and emphasized the importance of shareholders and long-term-minded visionaries.
United States government agencies have scrutinized the leadership of major crypto exchanges, including FTX and Binance, over the last 12 months on charges spanning from misappropriation of investor funds to bypassing Anti-Money Laundering (AML) regulations.
According to Powell, the investigations offer vitally important answers to the question, How are they going so fast? and How are they getting away with it?
Powell views the legal proceedings against Binance and former CEO Changpeng “CZ” Zhao as a positive development, “going after the most egregious offenders offshore would require effort.”
He claimed that crypto firms based in the United States, including “Kraken, Coinbase, and Ripple, are all easy targets, sitting in their backyard.”
The game feels a bit more fair today. The last 12 months have answered 2 nagging questions from shareholders:
1. How are they going so fast?
2. How are they getting away with it?"Trust me, any day now…" is only believable for so many years. It's hard to keep faith while…
— Jesse Powell (@jespow) November 23, 2023
Powell, alluding to CZ’s recent admission that Binance had violated AML regulations, emphasized the importance of self-police to enhance the industry’s standing:
“Each dodgy operation represents an opportunity for governments to scapegoat crypto and tighten the noose.”
He added that he urged the community to work together to restore the crypto ecosystem’s reputation by endorsing trustworthy services that “are playing the long game.”
Additionally, he advocated for the Know Your Customer (KYC) mandate, provided that it helped lawfully integrate new users into the crypto community.
Despite the company’s long-term strategy, the U.S. Securities and Exchange Commission filed suit against Kraken on Nov. 20 for allegedly commingling customer funds and failing to register as a securities exchange, broker, dealer, and clearing agency with the regulator.
The lawsuit asserts that, under United States law, crypto assets are securities contracts.
“Without registering with the SEC in any capacity, Kraken has simultaneously acted as a broker, dealer, exchange, and clearing agency with respect to these crypto asset securities.”
A Kraken spokesperson revealed that the company disagrees with the SEC’s complaint and intends to mount a legal defense.
The spokesperson further stated, “It is disappointing to see the SEC continue down its path of regulation by enforcement, which harms American consumers, stunts innovation and damages U.S. competitiveness globally.”