Cryptocurrency exchange, Kraken has reached a $30 million settlement with the US Securities and Exchange Commission (SEC) and agreed to end its crypto staking-as-a-service platform for US customers.
Announced on Thursday, the settlement with Payward Ventures, Inc. and Payward Trading Ltd., two companies operating Kraken, came as the US regulator accused the exchange of failing to register its staking -as-a-service program.
Settlements are not law. They’re a decision that the economics of settling are better than fighting, no more.
The SEC thinks staking-as-a-service is a security. Kraken didn’t admit or deny either way.
It may be a tough question, but the SEC hasn’t answered it either way today.
— Jake Chervinsky (@jchervinsky) February 9, 2023
Staking offers crypto holders rewards for locking up their cryptocurrencies with a blockchain
