Feb 11, 2023
SEC Charges Kraken Over Staking-As-A-Service Program Spark Outrage
The crypto community has been in an uproar over the recent charges brought against Kraken Exchange by the United States Securities and Exchange Commission (SEC). The SEC announced on February 9th that Kraken had failed to register the offer and sale of their crypto asset staking-as-a-service program, which the SEC deems as securities under their purview.
Kraken agreed to settle the charges by paying a $30 million fine and immediately ceasing the offering of staking services to U.S. retail investors. However, they will continue to offer these services offshore.
The news has been met with a great deal of backlash from investors, politicians, industry executives, and the crypto community at large. Adam Cochran, Cinneamhain Ventures partner and Ethereum bull, called out SEC chief Gary Gensler and questioned why the same standards weren’t applied to Sam Bankman-Fried and FTX.
Kristin Smith, CEO of the Blockchain Association, shared a statement on Twitter suggesting that Congress should be working with industry players to create appropriate legislation, rather than the SEC. U.S. Congressman Tom Emmer, who has long been a critic of Gary Gensler, also shared his opinion on Twitter, emphasizing the importance of staking in the crypto ecosystem and warning that the “purgatory strategy” will hurt everyday Americans the most.
Ryan Sean Adams, the founder of the Ethereum show Bankless, suggested that the SEC could have taken other measures rather than charging Kraken out of the blue. Other members of the community questioned how Kraken could possibly have registered with the securities regulator, as there was “no clear path” to approve crypto staking.
Not everyone was against the SEC’s decision, however. Bitcoin bull Michael Saylor agreed with Gensler’s analysis that retail investors “lose control” of their tokens when they’re delegated to external staking service providers. Jake Chervinsky, attorney and chief policy officer of the Blockchain Association, noted that such “settlements are not law” and that Kraken’s decision to settle was likely an economic decision rather than a legal one.
The SEC’s charge towards enforcing action against staking service providers has prompted Coinbase CEO Brian Armstrong to express his opinion that “regulation by enforcement” would be a “terrible path” for U.S. innovators, as they’ll be forced to push more of their services offshore.
The SEC’s decision has raised a lot of questions in the crypto community, and it remains to be seen how this will affect the industry. The move could have a significant impact on the development of the web3 space, as staking is becoming a popular way of earning passive income in the crypto world.
NFTs, or non-fungible tokens, are becoming increasingly popular as a way to promote and sell digital goods and services. NFTs are unique digital assets that cannot be replicated or exchanged for another asset. They are used to create digital collectibles, artwork, gaming assets, and virtual land.
NFTs have become a powerful marketing tool for companies looking to promote their products and services. Twitter NFT marketing has become a popular way for companies to reach their target audience, as users can easily share their NFTs on the platform.
The demand for NFTs has led to the emergence of NFT marketing agencies that specialize in helping companies promote their NFTs. These agencies provide a range of services, including NFT promotion, NFT sales, and NFT market research.
The SEC’s decision to charge Kraken could have far-reaching implications for the web3 space, as it could potentially limit the ability of companies to offer staking services to their customers. As such, it is important for companies to be aware of the potential risks associated with offering staking services and to ensure they are compliant with applicable regulations.
It is also important for companies to be aware of the potential benefits of using NFTs for marketing purposes, as well as the services that NFT marketing agencies can provide. By leveraging the power of NFTs, companies can reach a wider audience and increase their sales.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
