According to Godfrey Benjamin
Cramer might find the SEC’s crackdown on staking to be justified.
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Television personality, investor, and host of CNBC’s Mad Money, Jim Cramer (pictured above), said in a tweet today that he has been waiting for “the big sweep” in the cryptocurrency market.
Recently, the SEC issued a cease-and-desist order to Kraken in exchange for its staking product. The move provoked much debate in the industry over whether other companies offering similar products should also be worried about being targeted.
The SEC fined the trading platform $30 million and reached an agreement to see the exchange halt the offering of the product it launched back in 2019 to its U.S. customers.
In a Twitter exchange, CNBC host and renowned securities lawyer John Reed Stark noted that investigating cryptocurrency scams is ongoing. Jim Cramer responded by asking how big the “sweep” really is.
How big is this? I have been waiting for the big sweep! https://t.co/Nzy9iBjFgP
— Jim Cramer (@jimcramer) February 10, 2023
Known as a crypto proponent turned critic, Cramer has often expressed his negative thoughts about the digital currency ecosystem and why investors need to close their crypto positions.
Few SEC backers
Since the enforcement action was published by the SEC, several leaders in the digital currency ecosystem have stood up against the regulator for unfair practices. Even Hester Peirce, one of the SEC commissioners, has slammed the approach the SEC adopted to ensure its rules are enforced.
Despite the majority, the SEC may see a supporter in Jim Cramer and a host of others who believe staking models on some protocols conform with the provisions of the Howey Test for determining which assets are securities or not.
While Cramer’s stance on the crypto ecosystem has changed over the past year, proponents argue that functional start-ups that can create jobs and place the U.S. on the map for its financial evolution will only take their businesses offshore.
