• The SEC is meeting in a closed-door session on Thursday to settle charges with Kraken over offering unregistered securities.
• Kraken will immediately end its crypto staking-as-a-service platform for U.S. customers and pay $30 million in order to settle the SEC charges.
• The SEC has confirmed that Kraken’s staking services for U.S. customers will be shut down under the settlement agreement.
Kraken Agrees to Shutter US Crypto-Staking Operations
The U.S Securities and Exchange Commission (SEC) has voted on a settlement with cryptocurrency exchange Kraken where it agreed to immediately end its crypto staking-as-a-service platform for U.S customers and pay $30 million in order to settle the SEC charges of offering unregistered securities.
SEC Charges Over Unregistered Securities
Kraken offered its staking services with an APY of up to 20%, promising to send customers staking rewards twice per week, as stated on their website. It also offered a crypto lending product which provided up to 24% yield but both these services are expected to shut down under the said settlement agreement with the SEC.
Closed Door Session
The SEC held a closed door commissioner meeting on Thursday afternoon regarding settling charges against Kraken, and an announcement may come later in the day after the publication of this article, according to an industry person briefed on the matter.
Implications For Cryptocurrency Regulations
CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discussed how this case could have implications for wider cryptocurrency regulations across different countries, such as requirements for KYC/AML processes or even laws governing certain types of activities related to digital assets or tokens that can be classified as securities or financial instruments in some jurisdictions around the world.