What Prompted Kraken to Recruit a Senior Executive from Coinbase?

Blockchain platform Kraken has recently added a former high-ranking member from its competitor Coinbase to its team to better navigate the dynamic regulatory environment of the cryptocurrency industry.

Kraken’s CEO, David Ripley, stated that Marcus Hughes, formerly the European Managing Director and General Counsel for International Affairs at Coinbase, has been acquired for his expertise.

Kraken Brings Onboard Ex-Coinbase Senior Manager

Ripley emphasized in a public address that Hughes brings a wealth of insight from his tenure at Coinbase and past experience in investment banking, making him a perfect candidate to lead the global regulatory strategy:

“His almost ten years at Morgan Stanley have supplied him with the knowledge required to steer our regulatory approach and our global market growth endeavors.”

Read more: 11 Top Trading Exchanges for Altcoins in January 2024

Additionally, Ripley addresses the need to anticipate rapid alterations in regulation, especially with upcoming regulatory clarifications expected in the post-election United States this year.

“Being a global exchange, it’s crucial for us to adjust to regulatory shifts in our operational markets whilst maintaining an efficient and effective strategy for our expansion to ensure top-notch client service.”

Kraken also unveiled the hiring of Gilles BianRosa as the new Chief Operating and Product Officer. Similar to Hughes, BianRosa possesses traditional financial experience, having served at European Neobank N26.

Coinbase and Peers Cautiously Warned by US Senator

In light of fears that crypto exchanges may be using their recruitment of former regulators to sway regulatory outcomes favorably, this practice has received mixed reactions and has been called a “revolving door” for US government ex-officials.

Read more: Top 7 Crypto Exchanges With the Most Competitive Spreads in 2023

Previously in December 2023, BeInCrypto reported Senator Warren’s criticism of the employment of ex-government employees for crypto lobbying efforts in a communique to the Blockchain Association.

“I am addressing the recent concerning revelations that your group and other cryptocurrency players are “unleashing a powerful secret weapon: a substantial number of former defense, national security, and law enforcement authorities” to campaign on your behalf.”

Warren indicated that this indicates a loophole in the country’s ethical statutes, suggesting that such immediate shifts from public office to lobbying impair the trustworthiness of government institutions.

The Senator has called for enhanced transparency and responsibility within the sector.