It hasn’t been long since the SEC’s anti-crypto chairman stepped down, yet it seems the crypto market has already healed significantly. The leading crypto exchange, Kraken, has declared the reintroduction of its staking service for U.S. customers.
Why Kraken Paused Staking Previously
On February 9, 2023, the Securities and Exchange Commission (SEC) ordered the crypto exchange to terminate its staking service due to allegations that they were selling unregistered securities. Under the unclear picture of the regulatory framework for cryptocurrencies, the crypto exchange also faced $30 million in penalties.
“Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” SEC Chair Gary Gensler stated in PR.
Staking on Kraken allows users to earn rewards by locking up their cryptocurrencies to help secure a blockchain network or participate in staking-based protocols. Kraken provides estimated annual rewards based on network conditions.
hodl? nah. STAKE with Kraken 📊
Staking is back for some US clients!
⚙️ Stake anytime
💰 APRs that will make HODLers jealous
🛡 The security you deserve while earning on $ETH, $DOT, $ADA & more
Start here 👉 https://t.co/TQ9wMLprXK pic.twitter.com/28lInrxEJE
— Kraken Pro (@krakenpro) January 30, 2025
Kraken has announced that customers in 39 eligible U.S. states can now participate in bonded staking through Kraken Pro. Users in selected states can stake 17 assets, including ETH, SOL, DOT, and ADA. Furthermore, U.S. customers can now benefit from slashing insurance provided by a third party, which also offers additional protection against potential losses due to network penalties.
Trump Effect: Shift in SEC’s Stance
Under U.S. President Donald Trump’s brand new administration, the cryptocurrency sector is witnessing a big shift in the SEC’s approach to regulating digital assets.
On January 23, the SEC issued Staff Accounting Bulletin (SAB) No. 122, officially revoking SAB 121, introduced by the SEC’s previous hostile leadership. SAB 121 required companies holding crypto assets to record both a liability and a matching asset for safeguarding those assets. With its removal, businesses that followed SAB 121 will see big changes in their financial reporting.
Also Read: Did Shiba Inu’s Shytoshi Kusama Launch Shy Coin? Team Clears the Air
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