Kraken Waves Goodbye to Staking in the US, Reaches $30 Million SEC Agreement -

Kraken Waves Goodbye to Staking in the US, Reaches $30 Million SEC Agreement

Brandon Davis
February 10, 2023
Crypto, News
0 Comments

Kraken, a popular cryptocurrency exchange, has recently announced the closure of its Staking-as-a-Service (SaaS) in the United States due to a settlement with the Securities and Exchange Commission (SEC). The settlement, amounting to $30 million, puts an end to the legal dispute between Kraken and the SEC over the offering of unregistered securities.

Think about this folks. @GaryGensler and the SEC could have put out clear guidance on crypto staking and could have given US exchanges a month to update their terms.

But instead they use enforcement to cash grab $30M and shutdown Kraken staking.
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) February 9, 2023

Kraken’s Withdrawal from Staking-as-a-Service

Kraken has decided to discontinue its SaaS offerings in the US, which allowed users to earn rewards for holding and supporting cryptocurrencies on the platform. The company stated that the decision was made in light of the ongoing regulatory landscape and the settlement with the SEC. The closure of the SaaS services will have a limited impact on US-based users, as it only affected a small portion of the platform’s overall staking offerings.

Settlement with the SEC

The Securities and Exchange Commission raised concerns about Kraken’s offering of securities that were not registered, leading to a legal dispute. To resolve the issue, Kraken has agreed to a $30 million settlement, which will go towards covering any profits made from illegal actions and penalties. Although the company has not officially acknowledged or denied the charges, they have agreed to the settlement as a means to close the case.

Kraken’s settlement with the SEC and the discontinuation of its SaaS offerings in the US is a significant step for the cryptocurrency exchange.

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