Kraken to Shutter Crypto-Staking Services, Pay $30M to SEC

• Kraken exchange has agreed to shut down its US crypto-staking operations and pay a $30 million settlement to the SEC for offering unregistered securities.
• The SEC voted on the settlement in a closed-door meeting and an announcement is expected later in the day.
• Kraken offered a number of services under its staking umbrella, including a crypto-lending product with up to 24% yield, as well as 20% APY rewards paid out twice per week.

Kraken Agreed to Shutter US Crypto-Staking Operations

The U.S. Securities and Exchange Commission (SEC) announced Thursday that crypto exchange Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers, and pay $30 million to settle charges it offered unregistered securities.

SEC Meeting in Closed Door Session

CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discusses the details and wider implications of this news, noting that the SEC is meeting in a closed door session on Thursday to vote on this deal.

Closing Down of Staking Services

Under the settlement, Kraken’s crypto staking services are expected to be shut down for U.S customers – which included a crypto lending product offering up to 24% yield, as well as 20% APY rewards paid out twice per week according Bloomberg’s report from Wednesday..

Implications for Crypto Regulation

Nikhilesh De further discussed the wider implications for crypto regulation posed by this news, noting that regulatory clarity remains key for industry growth.


In conclusion, this news signals an important step forward in terms of providing regulatory clarity around cryptocurrency staking products and services in the United States – something which is essential if we are to see sustained growth within this sector going forward.