The only solution is to have something similar to the FDIC in place so that customer funds can be guaranteed for up to 2 Bitcoin. then I do not expect a person to deposit more than 2 Bitcoin and want to trade daily, especially with more regulated options such as ETFs.
No , the solution is exactly the same as the current law, where banks are forced to keep clients money out of their personal investments.
Funny thing, you know who implemented this law and who run away from it?
It was Japan, and because of this no FTX funds in Japan's FTX branch were lost, and the guy running away from Japan and losing their licenses there was no other than CZ and Binance!
Once you make a deal and settle with government there is no more coming back, they are going to continue until they close the business or force it to shutdown.
I respect Kraken for trying to resist for so long, especially since they are registered in United States, but I think it would be much smarter if they move to some better crypto friendly location.
Both Kraken and Coinbase promoted the sale of token, sold them directly earning commissions, earned commissions from the trading fees, used their own accounts and customers accounts when settling trades, so they did basically eveything a a broker and clearing agency would do but they didn't register as one, and obviously, since they claim they are not one they also claim they are not liable for anything that goes wrong!
They will not go anywhere, they will pay their fine, register as the law requires, and keep on doing business like previously but lawfully, Coinbase has already done so and is right now fighting in courts just to lower the fines, nothing else!
Neither Kraken nor Coinbase are dumb enough to flee the US, that's where the money is, look how Binance tires no matter what to keep a pie of that US market even if it CZ himself lands in jail!
It's not about "
resisting" it's about fleecing your customers beyond the law!