The head of the SEC urged to pay attention to the story with Kraken

Garry Gensler-min
Garry Gensler-min

Cryptocurrency platforms should “take note” of Kraken’s decision to close the staking program for US customers. This was announced on CNBC by the Chairman SEC Gary Gensler.

“Companies like Kraken can offer investment contracts and investment schemes, but they must disclose complete, honest and truthful information. And that puts the investors who watch your program in a better position. This is our main deal. They did not comply with this basic law,” Gensler said.

According to him, the story with Kraken should attract the attention of market participants. At the same time, when asked by the host what coercive measures could be applied to other programs like Coinbase Earn, the head of the department replied that the “labels” – credit, income or earnings – do not matter.

“If someone takes their tokens and transfers to this platform, the platform controls them, and guess what happens if they go bankrupt? You are standing in line at the bankruptcy court, ”the functionary explained.

He also referred to the popular phrase in the community “Not your keys, not your crypto” and called on the platforms to “strive to ensure compliance” with current rules.

Earlier, a Bloomberg source reported on the ongoing investigation into Kraken. The attention of the SEC was attracted by the staking program, the offer and sale of which the platform “did not register”.

According to the agency, the exchange did not admit or deny the allegations, but agreed to close the program for US users and pay $30 million in fines.

According to Dune Analytics, the exchange is one of the top three Ethereum stakers, behind only Lido and Coinbase.

The actions of the Commission caused discontent not only in the community, but also criticism from the authorities. SEC Commissioner Hester Pierce statedthat forced regulation “is not an efficient and fair way, but U.S. House of Representative Tom Emmer indicated on the important role of staking “in creating the next generation of the Internet.”


Speaking at a conference at the University of Pennsylvania, Pierce once again cited the case against Kraken as an example of digital asset enforcement. CoinDesk.

According to her, the SEC “has been aware of staking for a long time,” but the regulator did not try to discuss the issue with representatives of the industry. The official called the actions of the Commission “arbitrary”.

“Yesterday’s decision basically said, ‘Let’s just close this.’ Such [подход] can’t be the answer,” Pierce said.

Earlier, Coinbase CEO Brian Armstrong opposed the ban on staking for retail investors, calling it “a terrible path.”

Recall, on February 7, Gensler said that the regulation of cryptocurrencies is on the list of priorities of the Commission for 2023.

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