The Chief Legal Officer of Kraken, a well-known cryptocurrency exchange, has expressed a positive outlook for the future of the digital asset industry following Binance’s recent settlement with the US government. This sentiment comes amidst intense regulatory scrutiny within the cryptocurrency sector.
Last month, Binance, the world’s largest crypto exchange by trading volume, agreed to a substantial settlement with the US government. The exchange consented to pay over $4 billion in fines after admitting to money laundering charges, violating sanctions, and operating an unregistered money-transmitting business.
In a recent interview with CNBC, Marco Santori from Kraken reflected on the implications of Binance’s settlement for the broader crypto industry. He views the settlement as a turning point, suggesting it could herald a new cryptocurrency era. Santori highlighted the relief among Binance users, noting no missing funds or insolvency allegations. Instead, the focus was on serious but manageable violations of financial services laws.
Santori believes this development indicates a brighter future for the crypto and digital asset ecosystem that moves away from the industry’s more troubled past.
This optimism from Kraken’s legal head comes at a time when the exchange itself is under scrutiny by the U.S. Securities and Exchange Commission (SEC). Last month, the SEC initiated a lawsuit against Kraken, alleging it operated as an unregistered securities exchange, broker, dealer, and clearing agency.
In light of these developments, Santori mentioned that Kraken is closely monitoring the progress of a US bill, Fit21, which recently advanced out of committee. This proposed legislation aims to establish a regulatory framework for cryptocurrency exchanges in the United States, including major players like Kraken, Coinbase, and Gemini. The bill’s progress is seen as a critical step in defining the regulatory landscape for cryptocurrencies in the US.