The United States Securities and Exchange Commission’s fine on the Kraken exchange for its crypto staking product and the exchange’s termination of the product led to various reactions from the market. Legendary exchange Jim Cramer says he expects the ‘big wave’ to regulate the cryptocurrency market.
“SEC crypto enforcement wave continues”
Popular media personality Jim Cramer, the investor and host of CNBC’s Mad Money show, said in a tweet today that he expects a ‘huge leap’ in the crypto ecosystem. For the past 24 hours, the industry has been outraged by the United States Securities and Exchange Commission’s (SEC) enforcement lawsuit over the Kraken exchange for its staking product. cryptocoin.comAs you follow, the SEC has fined the trading platform $30 million and reached an agreement that will stop the exchange from offering the product it launched in 2019 to its US customers.
Sharing his views on Twitter, Jim Cramer seemed somewhat happy about the enforcement action. In a tweet by renowned legal practitioner and professor John Reed Stark, who noted that the action, called crypto sanctions screening, is still ongoing, he noted:
The SEC crypto enforcement wave continues. Stay tuned for more. Sweeping is still in its infancy and prosecuting lawsuits is like shooting fish in a barrel. Kraken will end its unregistered crypto-asset offering and sale staking program as a service and will pay $30 million to honor its SEC agreement.
Commenting on John Reed Stark’s tweet in question, Cramer asked a question about how big the ‘wave’ was.
How big is this? I have been waiting for the big sweep! https://t.co/Nzy9iBjFgP
— Jim Cramer (@jimcramer) February 10, 2023
Known as a crypto advocate and critic, Jim Cramer often voices his negative thoughts about the digital currency ecosystem and why investors should close their crypto positions.
Some SEC supporters also criticize the decision
Since the enforcement case was filed by the SEC, several leaders in the digital currency ecosystem have turned against the regulator for unfair practices. Even Hester Peirce, one of the SEC commissioners, criticized the approach the SEC has taken to ensure its rules are enforced.
Despite the majority, the SEC may see a supporter in Jim Cramer and many others who believe the staking patterns in some protocols are in line with the provisions of the Howey Test for determining which assets are and are not securities. While Cramer’s stance on the crypto ecosystem has changed over the past year, advocates argue that only functional startups that can create jobs and put the US on the map for its financial development will move their business offshore.
