TechFlow news — Regarding Kraken's settlement with the U.S. SEC and its decision to terminate staking services for U.S. users, SEC Chair Gary Gensler stated, “Whether through staking-as-a-service, lending, or other means, when crypto intermediaries offer investment contracts in exchange for investors’ tokens, they must provide the appropriate disclosures and investor protections required by our securities laws. Today’s action should signal to the market that staking-as-a-service providers must register and deliver full, fair, and truthful disclosures along with investor safeguards.”
As previously reported, the U.S. Securities and Exchange Commission (SEC) announced on Thursday that cryptocurrency exchange Kraken will “immediately” cease its staking-as-a-service platform offerings to U.S. customers and pay a $30 million penalty to settle charges related to offering unregistered securities. Kraken’s parent companies, Payward Ventures, Inc. and Payward Trading Ltd., will terminate their staking services and programs, which have been offered to the public since at least 2019.
In a blog post, Kraken said it would automatically unstake assets other than Ethereum for U.S. customers; Ethereum staking will be unwound after the Shanghai upgrade takes effect on the Ethereum network. U.S. customers will no longer be able to stake new assets, including Ethereum, while non-U.S. users will remain unaffected. Original link
