Kraken agrees to pay $30M and discontinue its crypto-asset staking products to settle SEC allegations that its staking services broke US securities rules
is Coinbase next? Simon Chandler / Cryptonews : Ethereum Price Prediction as $10 Billion Trading Volume Comes In - Can $ETH Reach $2,000 Soon? Tyler Pearson / DL News : SEC hammer comes down on Kraken, Paxos probed, 3AC launch a comeback, Tether finally proves reserves Florence Muchai / Cryptopolitan : Bitcoin's 2023 rally fizzles amid SEC's crypto crackdown Pahi Mehra / TechCircle : Bitcoin price drops as Kraken announces crypto staking closure Molly White / Web3 is Going Just Great : Kraken ends staking, pays $30 million fine in settlement with U.S. SEC Barron's Online : No Crypto Ads This Super Bowl. Why That's a Critical Sign. Trustnodes : Kraken Stops Ethereum Staking, Fined $30 Million William Hicks / San Francisco Business Journal : Crypto exchange Kraken settles with SEC for $30 million Sergio Goschenko / Bitcoin News : Kraken Winds Down Staking for US Investors, Pays $30 Million to Settle Unregistered Offering of Staking Services Case With SEC Krisztian Sandor / CoinDesk : Liquid Staking Tokens Rally as Kraken Shuts Staking Service to Settle With SEC Mitchell Clark / The Verge : Kraken pays a $30 million fine and shuts down crypto staking in the US Leo Schwartz / Fortune : Gary Gensler hits Kraken with $30 million settlement, prompting outcry of ‘regulation by enforcement’ The Information : Kraken to Shut Down Staking as Part of SEC Settlement Tweets: Gary Gensler / @garygensler : Today @SECGov charged Kraken for the unregistered offer & sale of securities thru its staking-as-a-service program. Whether it's through staking-as-a-service, lending, or other means, crypto intermediaries must provide the proper disclosures & safeguards required by our laws. Hester Peirce / @hesterpeirce : My thoughts on today's Kraken settlement: https://www.sec.gov/... Brian Armstrong / @brian_armstrong : Well said. There was no way to register (a disingenuous offer). “Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.” https://twitter.com/... Eleanor Terrett / @eleanorterrett : 🚨SCOOP: My @SECGov sources tell me to be prepared for a potentially big announcement tomorrow. Could it have something to do with a @krakenfx settlement following a closed meeting at 2pm? Could settlement terms have industry ramifications? We'll see. 👇🏼 https://www.sec.gov/... Michael Saylor / @saylor : “Not your keys ... ” - @GaryGensler. The @SECGov understands the importance of self-custody. https://twitter.com/... Jesse Powell / @jespow : Thank you. Some guidance would be appreciated. The “This is wrong but I won't tell you how to do it right. Want to find out if X works? Try it and see what happens.” approach does not help the industry nor consumers. We aren't anti-regulation but we need a clear path to operate. https://twitter.com/... @crypto_div : The US wants control on all interest bearing instruments for US citizens & the shutdown of Centralized Staking has begun. Decentralized staking cannot be stopped.. BUT if the SEC goes further and threatens retail investors in the US with prosecution if caught participating, that... https://twitter.com/... Paul Vigna / @paulvigna : The real question isn't, “why does the SEC want all these crypto things registered as securities?” The real question is, “why isn't the SEC making it easier to register these things as securities?” https://twitter.com/... Ran Neuner / @cryptomanran : Please get rid of @GaryGensler the clown and put this lady in charge!! https://twitter.com/... Nicky Saps / @nsapproductions : Thanks for promoting self-custodial, consensus-based staking (i.e. @DiviWallet), Gary. He protec https://twitter.com/... Adam Cochran / @adamscochran : 1/3 Gensler points out this offering was “unregistered” and failed to provide proper disclosures. The old “come in and register” while leaving out that by current standards it's not possible to register such an offering at all. https://twitter.com/... Hailey Lennon / @haileylennonbtc : “Most concerning, though, is that our solution to a registration violation is to shut down entirely a program that has served people well.” Well said @HesterPeirce https://twitter.com/... Mike Dudas / @mdudas : “Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating. Moreover, staking services are not uniform, so one-off enforcement actions... does not cut it” ~ @HesterPeirce https://www.sec.gov/... Justin Bram / @justincbram : “All staked ETH will become unstaked after the Shanghai upgrade and will continue to earn rewards until then. There are no changes to the payout structure until after the Shanghai upgrade, when ETH will be unstaked.” https://blog.kraken.com/... Eleanor Terrett / @eleanorterrett : “Today, the SEC shut down @krakenfx's staking program and counted it as a win for investors. I disagree and therefore dissent.” - @HesterPeirce https://www.sec.gov/... @punk6529 : silver lining is more people directly on chain https://www.coindesk.com/... Parker / @pt : I keep hearing crypto people say this will drive investors offshore, but I have no idea why investors would not prefer regulated onshore products...other than greater yields resulting from undisclosed risks. https://twitter.com/... Dan McArdle / @robustus : Do I have this right? - SEC bans retail staking in US - Good actors wind down staking products - Retail runs to shady offshore exchanges with their staking funds - Shady offshore exchanges do shady stuff, and retail loses money - SEC says “see, told ya you needed protecting” https://twitter.com/... David Gura / @davidgura : Here is the SEC news release, announcing the settlement: https://www.sec.gov/... Yueqi Yang / @yueqi_yang : SEC Chair Gary Gensler on ending Kraken's staking product in settlement: “Today's action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.” https://www.sec.gov/... Ally Versprille / @allyversprille : 🚨 SEC officially announces its settlement with Kraken. The agency says the firm was offering unregistered securities through its crypto staking service 🚨 https://www.sec.gov/... Nicky Saps / @nsapproductions : Staking on exchanges isn't staking. It's lending and letting the exchange stake and hoping they send some rewards back to you. Genuine staking is enabled by blockchain consensus and cannot be “shuttered” as a service. Learn the difference and prosper. https://twitter.com/... Jacob Silverman / @silvermanjacob : I don't see how 24% yields are anything but ponzinomics https://www.coindesk.com/... Simon Dixon / @simondixontwitt : It seems staking as a service on exchabtes will have to be sold in compliance with securities laws soon. @BankToTheFuture has been preparing for this already. Full disclosure I am a shareholder in @krakenfx https://twitter.com/...
Today @SECGov charged Kraken for the unregistered offer & sale of securities thru its staking-as-a-service program. Whether it's through staking-as-a-service, lending, or other means, crypto intermediaries must provide the proper disclosures & safeguards required by our laws.
Well said. There was no way to register (a disingenuous offer). “Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.” https://twitter.com/...
🚨SCOOP: My @SECGov sources tell me to be prepared for a potentially big announcement tomorrow. Could it have something to do with a @krakenfx settlement following a closed meeting at 2pm? Could settlement terms have industry ramifications? We'll see. 👇🏼 https://www.sec.gov/...
Thank you. Some guidance would be appreciated. The “This is wrong but I won't tell you how to do it right. Want to find out if X works? Try it and see what happens.” approach does not help the industry nor consumers. We aren't anti-regulation but we need a clear path to operate. …
The US wants control on all interest bearing instruments for US citizens & the shutdown of Centralized Staking has begun. Decentralized staking cannot be stopped.. BUT if the SEC goes further and threatens retail investors in the US with prosecution if caught participating, that.…
Do I have this right? - SEC bans retail staking in US - Good actors wind down staking products - Retail runs to shady offshore exchanges with their staking funds - Shady offshore exchanges do shady stuff, and retail loses money - SEC says “see, told ya you needed protecting” http…
The real question isn't, “why does the SEC want all these crypto things registered as securities?” The real question is, “why isn't the SEC making it easier to register these things as securities?” https://twitter.com/...
I keep hearing crypto people say this will drive investors offshore, but I have no idea why investors would not prefer regulated onshore products...other than greater yields resulting from undisclosed risks. https://twitter.com/...
“All staked ETH will become unstaked after the Shanghai upgrade and will continue to earn rewards until then. There are no changes to the payout structure until after the Shanghai upgrade, when ETH will be unstaked.” https://blog.kraken.com/...
“Today, the SEC shut down @krakenfx's staking program and counted it as a win for investors. I disagree and therefore dissent.” - @HesterPeirce https://www.sec.gov/...
“Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating. Moreover, staking services are not uniform, so one-off enforcement actions... does not cut it” ~ @HesterPeirce https://www.sec.gov/...
“Most concerning, though, is that our solution to a registration violation is to shut down entirely a program that has served people well.” Well said @HesterPeirce https://twitter.com/...
1/3 Gensler points out this offering was “unregistered” and failed to provide proper disclosures. The old “come in and register” while leaving out that by current standards it's not possible to register such an offering at all. https://twitter.com/...
SEC Chair Gary Gensler on ending Kraken's staking product in settlement: “Today's action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.” https://www.sec.gov/...
🚨 SEC officially announces its settlement with Kraken. The agency says the firm was offering unregistered securities through its crypto staking service 🚨 https://www.sec.gov/...
Staking on exchanges isn't staking. It's lending and letting the exchange stake and hoping they send some rewards back to you. Genuine staking is enabled by blockchain consensus and cannot be “shuttered” as a service. Learn the difference and prosper. https://twitter.com/...
It seems staking as a service on exchabtes will have to be sold in compliance with securities laws soon. @BankToTheFuture has been preparing for this already. Full disclosure I am a shareholder in @krakenfx https://twitter.com/...
ironically the best argument here comes from based SEC Comissioner @HesterPeirce she explains how a better SEC would have allowed services providers to register and comply proactively rather than leading with enforcement https://www.sec.gov/...
Kraken discontinued staking because the SEC said so. They should be taken to court. ‼️ No recommendation given ‼️ No laws broken ‼️ No complaints given But they shut down a great service to US citizens Thank you @HesterPeirce for dissenting. #freecrypto https://twitter.com/...
Mind blowing that the SEC charged Kraken. Kraken has always been proactively complying w/ regulations. This is directing US citizens that want custodial staking to less regulated platforms. By doing so, they are not protecting US citizens. They are throwing them to the sharks. ht…