Kraken to end its crypto-staking services in the U.S. heres why

• Kraken Terminates Crypto Staking Service To Settle With US SEC.
• It will also pay a $30 million fine as part of the settlement.
• This development calls into question Coinbase, which also offers staking.

Kraken The US-based crypto exchange focused on reports that it is pulling its curtains today. crypto staking operation.

Kraken pays $30 million fine to settle lawsuit

Kraken faced investigations from the U.S. Securities and Exchange Commission regarding the sale of unregistered securities.

The Kraken staking program is offered and sold as security. Staking-as-a-service providers must register and provide full, fair and truthful disclosure and investor protection.

On Thursday, Crypto Exchange agreed Terminate the business to settle these claims. Kraken will pay a $30 million fine, even though Kraken has neither admitted nor denied the allegations.

This development is the first regulatory crackdown on staking. It is a very popular service in crypto exchanges.

Non-US clients can still access staking services

Kraken offered a staggering 20% annual yield on staking that was sent to clients twice a week. On Twitter, Gary Gensler US SEC Chairman said: video message today:

When a company or platform offers these kinds of returns, whether that service is called lending, earning, rewards, APYs or staking, the relationship is protected by federal securities laws. must be accompanied.

However, the cryptocurrency exchange has confirmed that its staking services will continue to be available to customers outside the United States through a separate subsidiary.

Today’s settlement also raises questions Coinbase Global Co., Ltd. We also offer staking services in the US. Its shares closed a regular session on Thursday, down about 15%.