Kraken To Shut Down Crypto Staking Following $30M Fine By SEC
Kraken To Shut Down Crypto Staking Following $30M Fine By SEC.
Charges Against Kraken
San Francisco-based crypto exchange Kraken will “immediately” be ending its crypto staking program in the US as well as being forced to pay a hefty $30 million in penalties to settle the charges by the United States Securities and Exchange Commission (SEC).
The SEC reported on Thursday that they had charged the crypto exchange for selling unregistered securities through its “crypto asset staking-as-a-service program.”
“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.” SEC Chair Gary Gensler said.
Related: Coinbase CEO Talks Rumours Of SEC Wanting To Ban Crypto Staking!
Today we charged Kraken with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent.
— U.S. Securities and Exchange Commission (@SECGov) February 9, 2023
Coinbase & Crypto Staking Ban
This sudden announcement comes just a day after the CEO of another popular crypto exchange, Coinbase, warned of rumors that the SEC may be planning to ban institutional crypto staking altogether.
At the time, Coinbase CEO Brian Armstrong, described the idea of banning crypto staking to be “a terrible path for the U.S. if that was allowed to happen.”
Following news of Kraken’s halting of crypto staking, Armstrong has since tweeted his response, doubling down on his disagreement with the SEC. Armstrong describes the SEC’s decision as “not an efficient or fair way of regulating.”
“We will keep fighting for economic freedom (our mission at Coinbase). Some days being the most trusted brand in crypto means protecting our customers from government overreach.” The Coinbase CEO tweeted.
Well said. There was no way to register (a disingenuous offer).
“Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.” https://t.co/6wVZZbQt23
— Brian Armstrong (@brian_armstrong) February 9, 2023
Related: Here’s Why The Sandbox (SAND) Price Is Seeing Massive Gains Today!
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