Feb 11, 2023
“SEC Commissioner Blasts Agency Over Kraken Staking Shutdown”
The United States Securities and Exchange Commission (SEC) has been publicly criticized by Commissioner Hester Peirce for its decision to shut down the crypto staking program of the crypto exchange Kraken in the United States. Peirce, also known as the “Crypto Mom”, released a statement on Feb. 9 titled “Kraken Down”, in which she argued that regulation by enforcement is not an effective or fair way to regulate an emerging industry.
“Using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating,” Peirce wrote. “Moreover, staking services are not uniform, so one-off enforcement actions and cookie-cutter analysis does not cut it.”
Peirce suggested that the SEC should have initiated a public process to develop a workable registration process that provides valuable information to investors, instead of shutting down a program that was serving people well.
Coinbase CEO and co-founder Brian Armstrong agreed with Peirce’s comments in a Feb. 9 tweet, pointing out that there was no clear path to registering staking services with the regulator.
The SEC announced on Feb. 9 that it had reached 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 said in a blog post that it would still offer staking services to non-U.S. customers through a subsidiary, but the firm is permanently banned from providing staking services to U.S. residents, even if they sought to register it with the regulator.
The SEC’s decision to shut down Kraken’s staking program has raised questions about the future of crypto staking in the U.S. and has prompted Coinbase CEO Brian Armstrong to warn that eliminating crypto staking in the U.S. for retail customers would be a “terrible path” for the country, as it would further drive crypto businesses offshore.
Peirce has been a strong advocate for the crypto industry during her time at the regulator and has proposed a “safe harbor” for token projects which are looking to build decentralized networks. This proposal would give network developers a three-year grace period where they are exempt from SEC legal action. Peirce released an updated version of her proposal on April 13, 2021.
The SEC’s decision to shut down Kraken’s staking program has highlighted the need for a clear regulatory framework for crypto staking and NFTs, as well as the importance of NFT promotion and marketing. NFTs are a form of digital asset that can be used to create, promote, and sell digital art, collectibles, and other digital assets. NFTs have become increasingly popular in the web3 space, and businesses are turning to NFT marketing agencies to help them promote and market their NFTs.
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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.
