Feb 10, 2023
SEC Commissioner Blasts Agency for Shutting Down Kraken Staking Program
The United States Securities and Exchange Commission (SEC) has come under fire from Commissioner Hester Pierce for its decision to shut down Kraken’s crypto staking program in the United States. In her statement titled “Kraken Down”, Pierce argued that the SEC’s enforcement-based approach to regulating the emerging industry is not fair or efficient.
“Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating. Moreover, staking services are not uniform, so one-off enforcement actions and cookie-cutter analysis does not cut it,” Pierce wrote.
The commissioner’s remarks have been echoed by Coinbase CEO and co-founder Brian Armstrong, who said that the SEC’s offer to register staking services is “disingenuous” as there is no clear path to registration.
The SEC announced a $30 million settlement with Kraken on Feb. 9, citing the firm’s failure to register its crypto asset staking-as-a-service program, which offered investors returns of up to 21%. Kraken said that it would still offer staking services to non-U.S. customers through a subsidiary, but is permanently banned from providing staking services to U.S. residents.
Pierce has been a strong advocate for the crypto industry during her time at the SEC, and proposed a “safe harbor” for token projects which are looking to build decentralized networks. This proposal would provide a three-year grace period for network developers, exempting them from legal action from the SEC.
The commissioner’s stance on the Kraken shutdown has been welcomed by the crypto space, with many viewing it as a sign of progress in the regulation of the industry. However, it is yet to be seen whether the SEC will take her advice and open up a public process for developing a registration process for the industry.
In the meantime, the crypto industry will continue to look for ways to promote and market their NFTs, with Twitter NFT marketing being an increasingly popular option. Many businesses are turning to web3 agencies to help them with their NFT marketing and promotion strategies. As the industry continues to grow, the need for effective NFT marketing strategies will become even greater, so it is important for businesses to have a clear understanding of the best ways to sell their NFTs.
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.
