Kraken Bids Farewell to Crypto-Staking in US Following SEC Charge

The Kraken closure of its on-chain staking program is a major blow to the decentralized cryptocurrency space as it removes one of the most popular and effective methods for investors to gain rewards in return for holding coins. While other projects, such as EOS, are slowly but surely updating their platforms to include new and more efficient methods of staking, it may be some time before on-chain staking again becomes an attractive option for widespread use.

Kraken has agreed to end its on-chain staking services for U.S. clients, in response to a $30 million settlement from the exchange’s subsidiaries for “disgorgement, prejudgment interest and civil penalties.” This move is likely aimed at avoiding further regulatory scrutiny from the U.S., which has been targeting digital asset exchanges recently with increased vigor. Withdrawals and deposits will still be allowed on Kraken’s platform, regardless of location.

Kraken has been involved in SEC investigations for a number of years now, but this settlement marks the first time they have been found guilty. In light of this, Kraken will likely take a stricter approach to regulation in the future. This could mean more transparency and tighter compliance measures for some of their products, but it’s also possible that they could see a influx in new customers due to users being comfortable with the company’s

Crypto intermediaries, such as staking-as-a-service providers and lending platforms, will need to comply with new securities laws if they offer investment contracts in exchange for tokens. The SEC announced today that these companies must provide full, accurate disclosure and investor protection information to their customers. This is a major step forward for the development of blockchain technology and its potential applications in the financial industry.

As of today, assets held by U.S. Kraken clients that are staked will no longer earn rewards. Additionally, U.S. Kraken customers will not be able to stake additional assets, including ETH. This decision was made in an effort to reduce the risk of our user base and improve the overall stability and security of the platform as a whole.

Kraken, one of the largest crypto exchanges in the world, is making some changes to its staking service. Non-U.S. clients will continue to have access to staking services from a separate Kraken subsidiary, but U.S. customers will now be able to stake their tokens with the help of two new partners: Bitfinex and Bittrex. This update does not affect non-U.S. clients and staking services will continue uninterrupted in other regions

Kraken’s staking service offered up to 20% APY, with promises to deliver customers their rewards twice a week. By holding coins on Kraken, people could earn valuable rewards in return for their support of the network. This type of incentive system can be very beneficial for those who want to long-term hold onto their tokens and receive regular returns on their investment.

It seems that Coinbase is keeping a close eye on the SEC’s movements, as their CEO only tweeted about rumors that the SEC wants to get rid of crypto staking for U.S.-based customers mere hours after another high-profile company reported being investigated by the SEC. Whether or not this rumor is true remains to be seen, but it’s definitely something to keep an eye on as we move forward into 2019.

Many users in the crypto community are opposed to the idea of staking, as it would remove an important innovation from the space. Staking allows individuals to contribute their processing power towards running open networks, and it brings many benefits to the world of cryptocurrency. If this process were allowed to be discontinued, it would lead to a decrease in scalability, security, and environmental sustainability among other concerns.

The SEC’s recent settlement with Kraken highlights the importance of regulations when it comes to digital currency staking. This settlement will inhibit Kraken’s staking operations, but it doesn’t fully answer the question of whether the SEC will block all crypto staking going forward. Coinbase also has its own staking services, which raises questions about whether centralized exchanges will be allowed to continue offering this feature.

Rumors swirl around the SEC’s decision not to comment on its review of the Winklevoss Bitcoin Trust. Speculation ranges from allegations that regulators are doing their due diligence, to concerns that the scrutiny could be a ploy to kill the ETF altogether. There is no clear answer, but it will be interesting to see how this develops as more

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Ava Patel

Ava Patel is a cultural critic and commentator with a focus on literature and the arts. She is known for her thought-provoking essays and reviews, and has a talent for bringing new and diverse voices to the forefront of the cultural conversation.

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