The Chief Legal Officer of Kraken, Marco Santori, has aired his view on the recent clash of interests between the Securities and Exchange Commission and crypto-related platforms. He discussed this in an interview with Bloomberg.
Santori opined that the regulators might still continue the crackdown on some crypto exchanges and products. He says Kraken has foreseen that future and anyone who is not seeing that is “living in fantasy”. In other words, he quipped that everyone in the cryptoverse should see the possibility of tighter regulations as a reality.
Moving forward, he advised that exchanges should not imbibe an adversarial or confrontational approach in dealing with each regulator. According to him, “it pays to play nice.” He encouraged cordial means of settlement.
While he was interviewed on the recent Coinbase clash with the SEC over its Lend Program, Santori responded that the approach of Brian Armstrong in blowing the issue up on Twitter wasn’t the best. He reiterated that, from history, confrontational approaches don’t always work on regulators.
“I’ve certainly followed Brian’s tweets, I can’t support that kind of approach with regulators. It’s never been successful historically and from our experience, we’ve found the SEC to be open to discussion,” he said.
For some months now, exchanges have been strengthening their legal team and making sure to comply with new requirements in order to live cordially with the regulators. This was evident in Binance’s new appointment of Zane Wong among other things.