Kraken’s Jesse Powell Alleges Housing Discrimination Due to Crypto Involvement
Kraken co-founder Jesse Powell has filed a lawsuit for housing discrimination because of his connections to the cryptocurrency industry.
According to a report from Bloomberg, the New York-based cryptocurrency exchange is planning on introducing the trading services in both the United States and the United Kingdom in 2024. The offerings would sit under a new division named Kraken Securities.
This process behind expanding from the crypto exchange into traditional financial assets would entail gaining licenses from the Financial Industry Regulatory Authority (FINRA) in the United States and relevant financial regulators in the United Kingdom. According to sources, this step has already been taken.
Following the announcement, Kraken made a separate announcement stating that it had gained licenses for both Spain and Irish marketplaces which are aligned with providing digital asset services in the countries. Despite the positive movements for Kraken, it is also currently facing a civil lawsuit from the Australian Securities and Investments Commission (ASIC). The legal action is related to compliance law, with the lawsuit stating that Kraken failed to comply with design and distribution obligations for its product and service offerings.
Closer to its home, Kraken had come to an agreement with the United States Securities and Exchange Commission (SEC) in February. The exchange paid $30 million in disgorgement, prejudgment interest, and civil penalties and also gave up offering its staking services and programs for clients in the country as part of its penalty.
Kraken is looking to expand both globally and within the service it offerings, bringing stock and ETFs alongside cryptocurrency. If Kraken enters the world of providing both crypto and traditional financial products, it’ll be able to capture a broader audience. This expansion, though, will entail navigating regulatory hurdles and compliance systems with financial authorities across several countries.
Kraken co-founder Jesse Powell has filed a lawsuit for housing discrimination because of his connections to the cryptocurrency industry.
The head of the finance industry association has pledged to introduce a crypto ETF on the domestic exchange in 2025.
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