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Kraken halts staking for US customers

Crypto exchange Kraken has reached an agreement with the U.S. Securities and Exchange Commission to halt its staking program for American customers.

By Mike Hesp
• 2 min read
Kraken halts staking for US customers

Crypto exchange Kraken has reached an agreement with the U.S. Securities and Exchange Commission to halt its staking program for American customers.

To defend against accusations by the U.S. Securities and Exchange Commission (SEC), Kraken has paused its staking program for American customers and agreed to pay a $30 million fine.

The SEC accuses the crypto exchange of unregistered securities trading. The company's staking program was not properly registered, the agency said. Staking lets investors help secure proof-of-stake blockchains by depositing crypto and earning a return on their investment.

"Whether it’s via Staking-as-a-Service, lending, or other means, crypto intermediaries must provide the proper disclosures and protections our securities laws require when offering investment contracts in exchange for investors’ tokens," SEC Chair Gary Gensler said.

According to a Kraken blog post, the measures only affect U.S. customers. A few days ago, the SEC indicated that crypto research would be a top priority this year.

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