Kraken: unsustainable cryptocurrency regulation in the U.S.

Kraken's chief legal officer said in an interview a few days ago that the U.S. cryptocurrency regulatory system is unsustainable.
For several months now, many U.S. crypto exchanges, or foreign ones but operating in the U.S., have been experiencing problems, particularly with the SEC.
The SEC is the local body that oversees financial markets, especially securities markets, and actually accuses all crypto exchanges of allowing unregistered securities transactions.

Lack of clarity

The problem is a lack of clarity in regulation, particularly in the U.S. it is still unclear how traditional rules should apply to new cryptocurrency markets in the absence of specific regulation for digital assets.
In the EU, on the other hand, they have already solved this problem with MiCAR, the Regulation on Crypto Asset Markets.
Thus, there are those around the world who have already tried to bring clarity to the regulation, and those who have yet to provide crypto operators with a defined and clear regulatory framework to operate safely.
Truth be told, the issue raised by the SEC has not yet been clarified in the European Union either, but while in the EU no financial market regulator has yet raised the issue by blaming exchanges, the SEC has.
However, it is not the SEC's right to arbitrarily decide what counts as a security and what does not, or it would have done so already. The decision is up to the courts, which theoretically should rule on each individual cryptocurrency. It would have been much easier and clearer if Congress had instead expressed a clear and definitive opinion on the matter, perhaps by a special law.

Kraken's position on cryptocurrency regulation

Kraken is one of the largest cryptocurrency exchanges in the U.S., especially after the departure of FTX. It is a historic exchange, in existence since 2011, and it has always taken a stance close to the libertarian principles that led to the birth of Bitcoin.
Kraken CLO Marco Santori expressed what could be considered the company's stance on the state of crypto regulation in the U.S. and the problems it poses to exchanges.
First of all, he stated unequivocally that "the situation in the U.S. is unsustainable" with regard to cryptocurrency operators, and that something needs to be done about it.
While agreeing to stress the importance of consumer protection, he also wanted to see innovation continue in the U.S.
Instead, it seems that U.S. exchanges are trying to get out of the country, for example, the largest U.S. crypto exchange just opened a new international version in Bermuda.
For Suntory, the main problem at the moment is the jurisdictional battle between the SEC and the CFTC, with the SEC trying to gain more power in this regard by claiming that cryptocurrencies are securities, while according to the CFTC (Commodity Futures Trading Commission), most are commodities.