Thomas Daniels
Kraken has reopened bitcoin staking services for U.S. consumers in 39 states that qualify, almost two years after reaching a settlement with the Securities and Exchange Commission (SEC) for $30 million. As the U.S. government reevaluates its approach to crypto supervision, the action suggests possible regulatory changes in the digital asset sector.
Kraken’s Return to Staking Following SEC Crackdown
Kraken agreed to settle claims of securities law violations pertaining to its staking-as-a-service business in February 2023 by paying a $30 million fine. The cryptocurrency exchange has to stop offering staking services to its U.S. clients as part of the settlement.
The company is now reintroducing staking for 17 digital assets, such as Ethereum (ETH), Solana (SOL), and Cardano (ADA), through its Kraken Pro platform. The service will use a bonded staking mechanism, which requires users to lock up their assets for a fixed amount of time that fluctuates depending on the blockchain network. Kraken has also introduced slashing insurance to improve staker risk management.
Changes in Regulations Under the New Administration
Staking services have been relaunched in response to more extensive modifications to U.S. cryptocurrency regulations. The administration has indicated a more pro-crypto stance since President Donald Trump returned to office by assigning individuals with pro-digital asset views to important regulatory roles. The SEC’s earlier stringent enforcement, which categorized staking programs as unregistered securities offerings, has changed.
Kraken’s move to start staking again may be a sign that legislation governing cryptocurrencies are becoming more clear, especially with relation to services that generate yield. Staking and other blockchain-based financial products may continue to change as federal agencies and legislators work to enact complete laws for digital assets.
