SEC is open to discussion when it comes to crypto: Kraken chief lawyer

Amid a fraught periodfor some high-profile United States crypto firms and financial regulators, Kraken chief legal officerMarco Santori is calling for a dose of pragmatism going forward.

Speaking on Bloombergs QuickTake Stock broadcast on Thursday, Santori told viewers, Youre living in a fantasy world if you dont believe that this industry is going to face heavier, more Wall Street-like regulation from governments in the U.S. and abroad.

Santoris comments follow threats by the U.S. Securities and Exchange Commission earlier this month to sue the well-known crypto exchange Coinbase over a crypto yield program the commission deemed to be a security. The move sparked the exchanges CEO, Brian Armstrong, to adopt a combative and resistant stance on social media, although the exchange has since announced it will scrap the program at issue, in line with the SECs wishes.

Commenting directly on the developments, Santori said, Ive certainly followed Brians tweets, and Ill say that look, youre just not being honest with yourself about the crypto community if a little bit of you doesnt think hes saying what a lot of people are thinking. He soon pivoted, however, taking pains to articulate the more pragmatic agenda hes pursuing at Kraken:

I cant support that kind of approach with regulators. Its never been successful historically, and from our experience, weve found the SEC to be open to discussion.

Related: Coinbase seeks new exec to debate with policymakers

U.S. financial regulators, particularly under SEC Chair Gary Gensler, have indicated they intend to introduce a host of policy changesthis year that will affect token offerings, decentralized finance, stablecoins, custody, exchange-traded funds and lending platforms. Despite his hawkish tone, Gensler has appealed to industry actors to engage with the agencygoing forward. With the regulatory outlook still evolving, the crypto markets, meanwhile,remain highly sensitiveto the possible implications of each of the regulatorscrypto-related public interventions.