Kraken CEO Powell Warns Of Crypto-Crackdown - Forex News by FX Leaders

Kraken CEO Powell Warns Of Crypto-Crackdown

Posted Tuesday, April 13, 2021 by
Shain Vernier • 2 min read

In a statement from Monday’s U.S. overnight session, Kraken CEO Jesse Powell issued a few interesting comments regarding crypto regulation. As the world’s fourth-largest cryptocurrency exchange, Kraken has tremendous pull in the industry. And, according to Powell, a “crypto crackdown” may be just around the corner.

In recent weeks, top global financial regulators have been vocal on the need for added cryptocurrency regulation. U.S. Treasury Secretary Janet Yellen is not a big fan of cryptos, as is ECB President Christine Lagarde. Both Yellen and Lagarde have gone on record citing Bitcoin BTC as being a potential conduit for money laundering, terrorist financing, and other illegalities. In response to these opinions, Powell made a few noteworthy comments late Monday:

  • Regarding a forthcoming crackdown: “I think there could be some crackdown.”
  • On the U.S. government’s $3000 anti-money laundering proposal: “Something like that could really hurt crypto and kind of kill the original uses case, which was to just make financial services accessible to everyone.”
  • On new regulation: “I hope that the U.S. and international regulators don’t take too much of a narrow view on this. Some other countries, China especially, are taking crypto very seriously and taking a long-term view.”

It’s no coincidence that the past week has been full of industry leaders commenting on crypto. The upcoming Coinbase IPO is sending shockwaves through the industry and has certainly grabbed the attention of competitors such as Kraken. If Coinbase strikes a massive valuation, Wall Street would be well-advised to prepare for an influx of cryptocurrency industry participants.

Kraken CEO Rattles Markets, Tron (TRX) Hits Profit Target

In a Live Market Update from last week, I issued a buy recommendation for Tron (TRX). The play turned out to be a success, producing a 30.5% profit after sustaining only a minimal drawdown.

TRX/USD, 4-Hour Chart

Overview: For now, all eyes are on tomorrow’s Coinbase IPO. The entire crypto industry is eagerly awaiting the final valuation, which some estimate to be as high as $100 billion. If so, not even the negative comments from Kraken CEO Jesse Powell will hold down optimism. Ultimately, the Coinbase IPO is a history-making step in cryptos being accepted into the financial mainstream. If it is an undeniable success, it is likely the first of many crypto IPOs coming during the foreseeable future.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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