In the aftermath of Binance’s $4.6 billion settlement and CZ’s resignation, Jesse Powell, co-founder of crypto exchange Kraken, takes to X (formerly Twitter) to reflect on the challenges faced by the cryptocurrency industry. Powell discusses the ongoing struggles, the need for self-policing, and Kraken’s commitment to the long game. Additionally, his remarks come on the heels of the Binance settlement, one of the largest fines ever paid in the crypto sector.
“The last 12 months have answered two nagging questions from shareholders: 1. How are they going so fast? 2. How are they getting away with it?” said Powell.
Powell subtly questions the credibility of promises like “Trust me, any day now…” that have been made within the industry for years. He highlights the challenge of maintaining faith as market share dwindles and enforcement actions seem to target the industry’s ‘good guys.’
In a nod to Kraken’s approach, Powell emphasizes the significance of long-term orientation, describing the cryptocurrency industry as a marathon. He underscores the need to lead by example, citing the unfortunate fate of like-minded peers who awaited justice and found no solace.
Powell warns that each non-compliant operator damages the crypto industry
Powell warned that each non-compliant operator damages the entire crypto industry’s reputation and invites stricter government oversight. “We clearly cannot count on timely protection. We have to self-police,” he urged.
Powell encouraged crypto users and investors to support exchanges that are deeply engaged in policy discussions and aim for long-term legitimacy, rather than chasing quick profits through lax compliance.
Kraken co-founder acknowledges that while services like Kraken may not offer 0-KYC accounts and the most exotic products, they contribute to the industry’s sustainability. The tweet serves as a plea for users to prioritize longevity over short-term gains, preventing yet another avoidable, collective black eye for the cryptocurrency sector.