Feb 10, 2023
“SEC Commissioner Blasts Agency Over Kraken Shutdown”
Hester Pierce, Commissioner at the United States Securities and Exchange Commission (SEC), has recently made a public statement condemning her own agency for shutting down crypto exchange Kraken’s crypto staking program in the United States.
The statement, titled “Kraken Down”, was released on Feb. 9 and argued that the SEC’s approach of “regulation by enforcement” is not an effective or fair way to regulate the emerging industry. Pierce also criticized the agency for its decision to shut down a “program that has served people well.”
The Commissioner suggested that the SEC should have instead initiated a “public process to develop a workable registration process that provides valuable information to investors.”
Brian Armstrong, CEO and co-founder of Coinbase, also expressed his agreement with Pierce’s comments in a Feb. 9 tweet, noting that there is no clear path to register staking services.
The SEC recently announced a $30 million settlement with Kraken, saying it failed “to register the offer and sale of their crypto asset staking-as-a-service program.” Kraken has since stated that it will still offer staking services to non-U.S. customers through a subsidiary, but is permanently banned from providing staking services to U.S. residents, even if they sought to register it with the regulator.
Pierce, known as the “Crypto Mom” at the SEC, has been a strong advocate for the crypto industry during her time at the regulator. She previously proposed a “safe harbor” for token projects which are looking to build decentralized networks, in which the network developers would receive a three-year grace period where they were exempt from SEC legal action. An updated version of this proposal was released on April 13, 2021.
The crypto space has been abuzz with news of the Kraken settlement, with many speculating on the future of crypto staking in the United States. The SEC’s decision to shut down the staking program has raised questions about the regulator’s stance on NFTs and other digital assets.
With the growing popularity of NFTs, many businesses are looking to capitalize on the potential of this new asset class. NFTs can be used to promote and sell a variety of products and services, and many businesses are turning to NFT marketing agencies and web3 agencies to help them get their message out.
Twitter NFT marketing is becoming increasingly popular, and many businesses are turning to NFT marketing agencies to help them create and promote their NFTs. These agencies can help businesses create and sell NFTs, as well as promote them on social media platforms like Twitter.
The SEC’s decision to shut down Kraken’s staking program has raised questions about the regulator’s stance on crypto and other digital assets. It remains to be seen how the regulator will respond to businesses looking to promote and sell NFTs.
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