Home Trading Following a settlement of $30 million with the SEC, Kraken ceases to...

Following a settlement of $30 million with the SEC, Kraken ceases to offer crypto staking services in America


According to SEC’s complaint, Kraken has offered and sold its crypto asset “staking services” since 2019, advertising annual investment returns of as much as 21%.

Gary Gensler, Chair of the SEC, commented:

Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws. Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.

Kraken posted a blog post stating that it will end its on-chain Staking Services for US Clients and will immediately unstake all assets of clients enrolled in the program. However, the crypto exchange stated that its staked ether, (ETH), will be untaken after the Shanghai upgrade

Kraken indicated that it will offer staking services to non US clients through a separate subsidiary.

Kraken, which announced its decision to cease operations in Japan earlier in December, cited current market conditions and a weak global crypto market.

The post Kraken ceases crypto staking

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