Kraken offers its customers the ability to 'stake' certain crypto tokens in order to earn rewards. In exchange for their work, validators are often rewarded with newly created crypto assets. Owners of crypto assets that use a 'proof-of-stake' blockchain can stake some of their assets to potentially take part in the process of validating transactions. 'When a company or platform offers you these kinds of returns, whether they call their services 'lending,' 'earn,' 'rewards,' 'APY,' or 'staking' - that relationship should come with the protections of the federal securities laws,' Gensler said. Those providers should register their staking services with the SEC, Gensler added. In a video message posted to Twitter on Thursday, SEC chair Gary Gensler said that most staking providers fail to provide customers proper disclosures such as how a company is protecting a user's staked assets. The settlement marks the SEC's first crackdown on staking, a common service offered at both centralized and decentralized crypto exchanges, including most of the major exchanges in the United States such as Coinbase (COIN.O) and Binance US.

Securities and Exchange Commission charges that it failed to register the program, the agency said on Thursday, in a move that could cause headaches for platforms with similar offerings. cryptocurrency staking service and pay $30 million in penalties to settle U.S. service only)Ĭrypto exchange Kraken agreed to shut down its U.S. 9 story has been refiled to add 'U.S.' in the first sentence to reflect the closure of the U.S.

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