Feb 14, 2023

U.S. SEC targets crypto ‘staking’ with Kraken crackdown

Posted by in category: cryptocurrencies

Feb 9 (Reuters) — (This Feb. 9 story has been refiled to add ‘U.S.’ in the first sentence to reflect the closure of the U.S. service only)

Crypto exchange Kraken agreed to shut down its U.S. cryptocurrency staking service and pay $30 million in penalties to settle U.S. Securities and Exchange Commission charges that it failed to register the program, the agency said on Thursday, in a move that could cause headaches for platforms with similar offerings.

The settlement marks the SEC’s first crackdown on staking, a common service offered at both centralized and decentralized crypto exchanges, including most of the major exchanges in the United States such as Coinbase (COIN.O) and Binance US.

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