Kraken’s newly appointed CEO has stated that he has no plans to register the company with the United States Securities and Exchange Commission (SEC) or delist any tokens labeled as securities by the SEC.
Kraken Exchange CEO Dave Ripley stated there is no reason to register with the SEC
According to a Reuters report on Thursday, incoming CEO Dave Ripley stated there is no reason for the company to register with the SEC as an exchange because it does not offer securities.
“There are no tokens out there that are securities that we want to list,” he said.
He did not rule out listing security tokens completely, noting that “there could be some new token out there that becomes interesting and also happens to be a security. In that case, we would potentially be interested in that path.”
Dave Ripley is set to succeed Jesse Powell as CEO after the Kraken co-founder decided to step down on September 21 after 11 years in the top job, citing the company’s massive growth and the significant strain on him to oversee it all.
In the company statement announcing the change in leadership, Ripley stated that his future goals are “in lockstep” with Powell’s and that Powell plans to “stay very engaged with the company.”
Ripley’s comments on crypto assets appear to be in direct conflict with SEC Chairman Gary Gensler, who recently stated his position on the status of crypto exchanges and tokens.
In testimony before the Senate Banking Committee on September 15, Gensler reiterated his position that most cryptocurrencies are securities and that many intermediaries, such as exchanges, broker-dealers, and those with custodial functions, deal in securities and should be registered with the SEC “in some capacity.”
“Crypto intermediaries may one day be required to register with both the SEC and the Commodity Futures Trading Commission (CFTC),” and dual registrants already exist.
The SEC opened an investigation into Coinbase earlier this year for alleged unregistered securities trading.
Michael Bacina, an Australian digital assets lawyer with Piper Alderman, told Cointelegraph at the time that the case could have a “serious and chilling effect” on crypto exchanges and token projects, regardless of whether the tokens are or are not securities.
This year, Gensler has come under fire for his agency’s approach to crypto regulation and its lack of action against “big fish” crypto exchanges.
Kraken has previously come under fire from the US Treasury Department’s Office of Foreign Assets Control (OFAC) for allegedly allowing users in Iran and other countries to buy and sell cryptocurrency, potentially violating US sanctions.