n reaction to the most recent SEC enforcement action, attorney John E. Deaton, founder of CryptoLaw, criticizes SEC Chair Gary Gensler. He labels Gensler as a dishonorable regulator, suggesting the SEC Chair knew that Kraken considered itself immune from further SEC action after agreeing to settle earlier charges.
The SEC levied fines on Kraken in February due to its staking-as-a-service program, which, according to the agency, was offered without adequate registration. To resolve these charges, Kraken consented to pay a $30 million fine.
Deaton's Defense and Rebuke of Gensler
While several industry commentators critique Kraken's decision to settle the charges, Deaton understands Kraken's position, arguing that a fight against the SEC would have resulted in bigger costs for the exchange. He criticizes Gensler's indifference towards the employees and investors impacted by these actions and anticipates a downfall for the SEC chair.
Congressman Davidson Reacts and Calls for SEC Reform
Davidson, responding to Deaton's criticisms, revives attention on the SEC Stabilization Act he introduced in June. This Act aims to reform the SEC, including the provision to remove Gensler from his chairperson position. Despite initial concerns regarding the bill's viability, Davidson insists that current enforcement actions against Kraken highlight the need for Gensler's dismissal.
The escalating scrutiny of the SEC on the crypto industry, led by Chair Gensler, has incited increasing criticism from industry stakeholders like Congressman Davidson and attorney John Deaton. Their shared dismissal campaign against Gensler signifies rising tension within the crypto community over the perceived harsh regulation of the crypto industry by the SEC.