Jim Cramer, popular media personality, investor and host of CNBC’s Mad Money show in the US, stated: in a tweet today that he was waiting “the big sweep” in the crypto ecosystem. In the past 24 hours, the industry has been rocked by the U.S. Securities and Exchange Commission’s (SEC) enforcement action against the Kraken exchange for its staking product.
The SEC fined the exchange platform $30 million and reached an agreement to stop offering the product it launched in 2019 to its U.S. customers already.
On Twitter, Jim Cramer seemed somewhat pleased with this enforcement action. Commenting on a tweet by noted legal scholar and professor John Reed Stark, who noted that the action dubbed “crypto-currency enforcement sweep” is still ongoing, Cramer posed a question about the scope of the “sweep.”
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 supporter turned critic, Cramer has often expressed his negative thoughts on the digital currency ecosystem and why investors should close their crypto positions.
Little support from the SEC
Since the SEC released its enforcement action, several leaders in the digital currency ecosystem have spoken out against the regulator for unfair practices. Even Hester Peirce, one of the SEC’s commissioners, criticized the SEC’s approach to ensuring its rules are enforced.
Despite the majority, the SEC could see a supporter in Jim Cramer and a host of others who believe that the staking models of certain protocols are consistent with the provisions of the Howey test for determining which assets are securities and which are not.
Although Cramer’s position on the crypto ecosystem has changed over the past year, proponents say functional startups that can create jobs and put the U.S. on the map of its financial evolution will only relocate their operations.