Daniele Servadei, the founder and Chief Executive Officer of the ecommerce platform Sellix, has criticized the U.S. Securities and Exchange Commission's (SEC) lawsuit against crypto exchange Kraken, labeling it as demonstrative of an outdated regulatory approach to cryptocurrencies. Servadei expressed these views in an opinion piece for CoinTelegraph on December 2nd.
Servadei remarked that the case is "not just an isolated legal battle" but "is indicative of a broader issue within the U.S. regulatory framework's approach to cryptocurrencies." He urged the SEC to evolve beyond its current tactics and engage more constructively with the crypto industry. The founder stated, "Regulation is necessary, but it must be reasonable, well-informed, and designed to foster innovation, not stifle it."
In response to this suit from the SEC, Kraken wrote in a November 20 blog post that they disagreed with the allegations made by the SEC — which claimed that Kraken has been operating as an unregistered exchange, broker, and clearing house. The post added that while they intended to "vigorously" defend their position in court, Kraken underlined that there were no allegations concerning fraud, market manipulation or misuse of funds.
Servadei emphasized how this lawsuit further highlights what he sees as the SEC's lack of understanding towards regulating an industry with complex dimensions like cryptocurrency. Servadei labeled their attempts as using an "outdated playbook," noting their lack of understanding. He also claimed that such instances are just a continuation in a series of ineffective regulatory actions by the SEC.
The CEO further clarified his stance, saying platforms like Kraken offer assets that do not easily fall within conventional securities' framework due to their diverse range — thus highlighting another failure by the SEC. Servadei said this misclassification shows a clear misunderstanding regarding unique characteristics inherent to cryptocurrencies which typically function as decentralized assets.
He further censured the SEC for their failure to uphold "technological neutrality" by trying to press digital assets into the traditional securities' regulatory framework. He stated that this lack of neutrality from the SEC is stifling innovation and creating hurdles for compliant platforms. This, he warned, may result in "regulatory arbitrage," wherein businesses are compelled to move out of U.S. jurisdictions into more crypto-friendly ones due to excessive regulation.
Servadei also suggested that such actions could possibly damage the SEC's reputation and credibility by sending across a negative message — one that portrays the commission as being more interested in displaying its authority rather than understanding and adapting to technological advancements.
In addition to Servadei, lawmakers including U.S. Sen. Cynthia Lummis have also expressed criticism towards the SEC's lawsuit against Kraken. In her post dated November 20th, she urged Congress to implement a defined regulatory framework which will clarify which digital assets are considered securities and which ones are commodities.
Born in Italy, Servadei is known for founding Sellix — an ecommerce platform that facilitates startups in selling digital goods easily. As per EU Startups, the platform presently boasts a robust customer base of approximately 2.3 million users.
