• Kraken will shut down its staking services in the US and pay a $30 million settlement to the SEC
• The settlement was voted on by the SEC during a closed-door meeting Thursday
• Kraken’s staking service offered as much as 24% yield with rewards twice per week
Kraken Agrees to Shut Down US Crypto-Staking Operations
Kraken has agreed to shutter its cryptocurrency-staking operations for U.S. customers and pay $30 million to settle Securities and Exchange Commission (SEC) charges it offered unregistered securities, according to the U.S. agency. The SEC voted on the settlement during a closed-door commissioner meeting on Thursday afternoon. A Kraken spokesperson declined to comment, while an SEC spokesperson declined to comment after this article was published.
Implications of Settlement
The settlement implies that Kraken will immediately end its crypto staking-as-a-service platform for U.S. customers, including its crypto-lending product offering up to 24% yield which is also expected to shut down under the terms of the agreement. Additionally, Bloomberg reported that Kraken was close to reaching a settlement with the SEC over offering unregistered securities prior to this announcement being made public Wednesday afternoon.
About Staking Services
Kraken offers various services under its staking umbrella, with one of them being a high yielding investment option promising a 20% APY rate and rewards distributed twice per week according to their website. However, these offerings are now deemed unregistered securities by the SEC and thus must be terminated in accordance with their ruling on Thursday afternoon.
SEC’s Role in Regulation
This is another example of how seriously regulators are taking companies operating within the cryptocurrency space who may not be adhering fully adhereing all necessary regulations when providing financial services or investments opportunities for consumers in America.. This ruling could potentially set precedent for other firms looking into similar products or offerings which may require registration with appropriate regulatory bodies before they can offer them publicly without repercussions moving forward..
What’s Next?
While no official statement has been released from either party yet regarding this ruling, it is likely that more information will come out soon once both parties have had time release any details from within their respective organizations following Thursday’s vote.. With regards specifically towards what’s next for Kraken however – it seems fairly certain at this point that they will no longer be able provide any sort of staking services for users residing within United States or anyone who uses an IP address located therein..