The SEC has launched a post-mortem investigation into Kraken’s staking enforcement.
On February 9, Kraken announced it would be discontinuing its staking service in the United States, revealing it would pay a $30 million fine to settle allegations that it failed to register its staking service as a security service. .
Kraken’s staking service will continue uninterrupted outside the United States, according to the company’s statement after the settlement.
SEC Commissioner Pierce Joins
crypto friendly SEC Commissioner Pierce In a statement, she said she disagreed with the regulator’s view that the move was “a win for investors.”
The Commissioner wondered if it would even be possible to register securities staking products with the SEC. Told.
“Whether the entire staking program is registered or each token’s staking program is registered individually, what are the key disclosures, and what are the accounting implications for Kraken?”
Furthermore, Commissioner Pierce said that using enforcement action to enact legislation “is not an efficient or fair method of regulation,” and condemned the agency’s regulation through an enforcement approach. I pointed out that the “canned” approach is not correct given that there are many variations of .
What will happen to staking in the US?
Input Output CEO Charles Hoskinson Acknowledging Commissioner Pierce’s remarks, he said:
“There is no standard definition of what delegation, staking, liquidity and custodianship really mean.”
Additionally, while Tezos, Cardano, Ethereum, Avalanche, etc. are all “staking systems,” staking is very different, and treating them the same can lead to “regulatory overhits.” also mentioned.
“Some are storable and non-fluid, some are liquid and non-storable. Some include binding or severing mechanisms. does not include.”
Nevertheless, decentralized services are expected to benefit greatly from the SEC crackdown for now.
Head of DeFi at Wave Financial Henry Elder It said the crackdown was a gift to DeFi staking protocols like Lido, Rocket Pool and StakeWise.
“Their competitive advantage is an innate resistance to regulatory action that would have been of little concern without such action.”
Similarly, Columbia Business School professor Austin Campbell said those wishing to stake would look to DeFi options, which would likely lead to a surge in DeFi staking activity in the short term. .