Kraken Agrees to End US Crypto-Staking to Settle SEC Charges

• Kraken has agreed to shut down its cryptocurrency-staking services in the US and pay $30 million to settle charges with the SEC.
• The SEC voted on the settlement during a closed-door commissioner meeting on Thursday.
• Kraken offers several services under its staking umbrella, including a crypto-lending product offering up to 24% yield.

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 in order to settle Securities and Exchange Commission (SEC) charges that it offered unregistered securities, the U.S. agency announced Thursday.

SEC Meeting

The SEC is meeting in a closed-door session on Thursday regarding the matter. CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discusses the details and wider implications for crypto regulation.

Details of Settlement

Under the settlement, Kraken will shut down all of its cryptocurrency staking services for U.S customers, including a crypto lending product offering up to 24% yield according to their website. Bloomberg reported Wednesday that Kraken was close to settling with the SEC over offering unregistered securities prior to this announcement from the agency today..


The news comes as yet another sign that regulators are taking a closer look at how cryptocurrencies are being used by exchanges and other service providers in America, making sure that they comply with existing laws and regulations when offering such services..


This move by Kraken shows that companies need to be aware of any potential legal or regulatory issues before launching new products or services related to cryptocurrencies or digital assets in general within the United States — even if those products or services have been available elsewhere without issue previously..

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