Primarily based on the responses from Armstrong and different crypto executives and decision-makers concerning rules, it’s clear lots of them don’t appear to know that they’re offering regulated companies in a non-compliant method. Within the particular case to which Armstrong reacted earlier than the info had been in, the SEC charged Kraken as a result of it was paying curiosity on deposit accounts. That may be a regulated exercise that the SEC supplies sure exemptions for, e.g., banks don’t need to register with the fee to pay curiosity on a financial savings account; it’s actually not the case that crypto corporations are exempted from registering for paying curiosity to depositors simply because the deposits are in crypto, as Brian Armstrong appears to imagine.
