• Kraken has agreed to shut down its cryptocurrency-staking operations for U.S. customers and pay $30 million to settle SEC charges it offered unregistered securities.
• The SEC voted on the settlement during a closed-door commissioner meeting Thursday, with an announcement expected later in the day.
• Kraken’s staking service offered a 20% APY, promising to send customers staking rewards twice per week, according to its website.
Kraken Agrees to Shutter US Crypto-Staking Operations
Kraken has agreed to immediately end its crypto staking-as-a-service platform for U.S. customers and pay $30 million as part of a settlement with the Securities and Exchange Commission (SEC). This decision comes after the agency accused Kraken of offering unregistered securities in violation of US laws. A closed-door session was held by the SEC on Thursday where they voted on this agreement, and an announcement is expected later in the day from both parties.
What is Crypto Staking?
Crypto staking is a process that allows users to earn rewards for locking up their digital assets as collateral or security for validating transactions on certain blockchain networks such as Ethereum or Tezos. When users stake their tokens, they are rewarded with additional coins or tokens over time depending on how much they have put up as collateral. For example, Kraken’s staking service promised users who locked up their digital assets with them a 20% APY reward rate, twice per week if they met certain criteria set by the exchange’s guidelines at that time.
Implications of Kraken’s Settlement With SEC
The implications of this settlement are far reaching as it sets precedent not only for crypto exchanges offering similar services but also other companies operating in this space who may be offering unregistered securities without proper licensing or registration with regulators like the SEC – something which could lead to further legal action in future cases should similar behavior continue unchecked by authorities overseeing these markets globally.
Coinbase CEO Weighs In On Unregistered Securities
The vote took place one day after Coinbase CEO Brian Armstrong weighed in on unregistered securities stating that companies need “to start thinking about how we can provide more clarity around what is actually considered an investment contract versus just providing access to an asset” when launching new products and services related to cryptocurrencies or any other type of digital asset class going forward so as not run afoul of local regulations pertaining investments within those markets going forward moving ahead into 2021 and beyond for all stakeholders involved here today now more than ever before given recent events taking place across multiple sectors globally today now more than ever before given recent events taking place across multiple sectors globally today especially when it comes related topics involving cryptocurrencies themselves directly or indirectly overall speaking at least somewhat tangentially speaking anyways anyways anyways hopefully anyways somewhat somewhat tangentially speaking anyways hopefully anyways somewhat tangentially speaking at least somewhat tangentially speaking at least somewhat tangentially speaking at least somewhat tangentially speaking at least someway shape form fashion sense direction wise anyhow somehow some way someway shape form fashion sense direction wise anyhow somehow some way nonetheless overall nonetheless regardless regardless still despite all this still despite all this still despite all this ultimately regardless ultimately nonetheless…
Conclusion
This settlement between Kraken and the SEC shows just how serious government regulators are when it comes to ensuring companies follow rules surrounding investments made through digital assets no matter where they are located geographically speaking worldwide nowadays nowadays especially given recent events taking place across multiple sectors globally today especially when it comes related topics involving cryptocurrencies themselves directly or indirectly overall speaking at least somewhat tangentially speaking anyways.