Crypto Gloss

Jesse Powell

Definition: Jesse Powell is the co-founder of Kraken, one of the oldest US-based crypto exchanges, who served as its CEO from 2013 to 2022 and was known for making Kraken one of the most trusted institutional-grade exchanges while simultaneously engaging in aggressive public confrontations with US financial regulators.

Career and Contributions

Founding Kraken

Exchange Leadership

  • Became one of the first exchanges with a CFTC-regulated futures product (Kraken Futures)
  • Was the go-to exchange for forensic accountants in the Mt. Gox bankruptcy proceedings
  • Launched Kraken Bank (Wyoming Special Purpose Depository Institution), one of the first banking licenses issued to a crypto company
  • Grew to one of the 5 largest exchanges by volume
  • Maintained a reputation for rarely being hacked (unlike many competitors)

Regulatory Conflicts

  • NYDFS and BitLicense — Powell famously chose not to obtain a New York BitLicense, blocking Kraken from serving New York residents rather than comply with what he called an overreaching regulatory regime.

Resignation (2022)

Timeline

  • 2011 — Co-founded Kraken.
  • 2013 — Kraken launched publicly; became exchange of record for Mt. Gox forensic proceedings.
  • 2014 — Mt. Gox collapsed; Kraken assisted in recovery proceedings.
  • 2016 — Declined New York BitLicense; stopped serving NY customers.
  • 2020 — Kraken obtained Wyoming bank charter (Kraken Bank).
  • 2022 — Stepped down as CEO.
  • Feb 2023 — SEC sued Kraken; settled for $30M; US staking discontinued.
  • 2024 — Kraken acquired NinjaTrader to enter US regulated futures trading.

Controversies

  • Libertarian politics — Powell’s outspoken libertarian views on trans rights, free speech, and political culture in the workplace generated internal and external controversy in 2022.
  • SEC settlement debate — Some in crypto criticized Kraken for settling rather than fighting; others saw it as pragmatic.
  • NY BitLicense — While praised by libertarians, critics argue Powell’s NJ move disadvantaged NY retail users who couldn’t access Kraken.

Social Media Sentiment

Powell is respected by crypto libertarians and exchange purists for principled regulatory resistance and for building a genuinely solid exchange. The 2022 workplace culture controversy temporarily damaged his public image outside crypto audiences.

Related Terms

Last updated: 2026-04