A day after crypto exchange Kraken shut down its staking platform for US customers in a settlement with SEC, Chair Gary Gensler warned other crypto platforms to learn suitable lessons from the Kraken example.
“There’s a saying in crypto that says not your keys, not your coins. So those other platforms should take note of this and seek to come into compliance, do the proper disclosures and registration and the like,” Gensler said on CNBC’s Squawk Box.
On Thursday, Kraken agreed to shut down its on-chain staking platform for US customers. In a settlement with the SEC, which had charged Kraken with offering unregistered securities, the crypto exchange agreed to pay $30 million in fines, media reports said.
“Today, two Kraken subsidiaries announced a settlement with the U.S. Securities and Exchange Commission (SEC) concerning Kraken’s on-chain staking program. Because of this settlement, Kraken has agreed to end its on-chain staking services for U.S. clients,” Kraken said in a statement.
The two subsidiaries are Payward Ventures, Inc. and Payward Trading Ltd. Together, they make up Kraken. Now both will end staking services and programs. Kraken’s staking services were available for at least since 2019.
“Starting today, Kraken will automatically unstake all U.S. client assets enrolled in the on-chain staking program… This applies to all staked assets except for staked ether (ETH), which will be unstaked after the Shanghai upgrade. U.S. clients will not be able to stake any additional assets, including USETH,” the Kraken statement elaborated.
