• Kraken and the U.S. SEC reach a settlement, requiring the exchange to halt cryptocurrency staking in the United States
• Notable figures like Brain Armstrong and Charles Hoskinson give their two cents on the pros and cons of cryptocurrency staking
• The SEC and Kraken’s spokesmen have declined to comment on the settlement, but Coindesk reports that an announcement may come at a later time
Kraken Settles with SEC
The United States Securities and Exchange Commission (SEC) recently came to a settlement agreement with leading cryptocurrency exchange Kraken. According to this agreement, Kraken is required to cease its crypto staking operations in the US.
Crypto staking involves customers who prefer to access markets through staking activities. Kraken’s crypto lending product offers 24% yield, which is currently under its staking services, offering customers 20% APY.
Future of Crypto Staking in USA
At press time, no official statements have been made regarding cryptocurrency staking in the US by any authorities. However, Coinbase’s CEO Brain Armstrong tweeted his thoughts on what might happen if the SEC goes forward with halting crypto staking for retail customers in America—noting it would be a “terrible path for the country” and could lead other firms outside of America for better policies elsewhere.
If The SEC enforces regulation by enforcement, it might not produce any favorable results as predicted by Brian Armstrong. It could potentially drive away existing cryptocurrency companies from the United States because of unfriendly policies offered by other countries instead.
This recent development between Kraken and SEC has sparked an important conversation among members of the crypto community concerning its future outlook within America. Whether or not this move will affect investors remains uncertain until an official statement is released from both parties involved in this settlement agreement.