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Crypto Exchange Kraken Has Decided to Halt its Staking Operations Due to SEC Charges
The famous cryptocurrency exchange Kraken has decided to halt its cryptocurrency staking operations in order to resolve charges with the United States Securities and Exchange Commission (SEC). This was reported by the crypto news site CoinDesk on Thursday evening.
The SEC has confirmed that Kraken will discontinue its staking services for customers based in the US and that it will pay a $30 million penalty as part of a speedy settlement with the SEC.
#cryptonews: #Kraken has reached a speedy settlement with the U.S. Securities and Exchange Commission — and will pay a $30 million penalty.🧐https://t.co/ktaTVJ6BD5
— CoinMarketCap (@CoinMarketCap) February 13, 2023
No Longer Providing Any Staking, Including For Algorand
Kraken provided several services under its staking operations, including a crypto-lending product that promised a yield of up to 24% and customers would receive staking rewards twice per week.
The ability to stake is now set to disappear for US-based users. Kraken has provided Algorand staking oppertunities in the past, recently offering 1-4% APY through their platform.
Gensler Claims Staking Resembles Lending
According to SEC chairperson, Gary Gensler, staking resembles lending and SEC has already taken action and settled charges with lending companies in the past, including the now-defunct BlockFi.
A settlement with Kraken would support Gensler's efforts to regulate the cryptocurrency industry and provide a significant victory for the SEC.
