Jesse Powell, the Kraken crypto exchange CEO, thinks that US regulators may try to “suppress” the digital asset sector.
In a conversation with CNBC, Powell acknowledged that the expansion of the cryptocurrency market is drawing a lot of attention, including growing interest from regulators. He considers that American supervisory authorities may try to reduce freedom in the cryptocurrency market. He is particularly worried about the recommendations of the American Financial Crimes Network, submitted in December 2020, according to which it is important to identify the participants in cryptocurrency transfers if their amount surpasses $3,000.
“Rules like that can really damage cryptocurrencies and ruin the original purpose of digital currencies – to deliver access to financial services to everyone,” Powell noted.
According to him, American watchdogs have a somewhat “short-sighted” stance on cryptocurrencies. Meanwhile, other countries, particularly China, are very serious regarding cryptocurrencies and are seeing long-term market prospects. Nevertheless, a ban on virtual assets in the US seems unlikely:
“Maybe the genie has by now been freed from the bottle. Trying to impose a ban on cryptocurrencies at this time will make them even more appealing. This will represent a recognition that the government considers crypto assets as a viable alternative to the fiat currency.”
In late March this year, a non-profit civil rights organization, the New Civil Liberties Alliance, countered FinCEN’s recommendations by asserting these rules violate the Constitution of the USA, supported in its claims by various exchanges and marketers.
