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As the SEC’s 2023 crypto crackdown builds, the US regulator on Thursday slapped Kraken with two charges related to its staking products.
Kraken settled on both SEC counts and shelled out $30 million accordingly. SEC Chair Gary Gensler — and other senior regulators — have recently emphasized their perceived need to protect retail investors from crypto staking activities.
The exchange agreed to “immediately cease offering or selling securities through crypto asset staking services or staking programs,” according to the SEC.
Two entities of Kraken, the latest crypto exchange to fall under the SEC’s crosshairs, were charged by the US securities regulator for failing to register crypto staking products as securities. In a statement on Thursday afternoon, regulators said that Kraken was offering staking yields as high as 21% on those products.
Gensler said in the Thursday statement that “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.”
This is a developing story. It will be updated.