Safe (safe) 
Kraken Reopens Cryptocurrency Staking for US Customers in Select States
Background and Settlement with the SEC
Following a settlement with the Securities and Exchange Commission (SEC) in February 2023, cryptocurrency exchange Kraken has relaunched its staking services for US customers in 39 eligible states. As part of the agreement, Kraken agreed to pay a $30 million fine and shut down its staking-as-a-service business for American clients.
New Business Offering and Eligible Tokens
The new staking services, available via Kraken Pro, will enable US users to stake 17 digital assets, including Ethereum, Solana, and Cardano. The service will adopt a bonded staking model, requiring users to lock up their tokens for a predetermined period. The lock-up duration will vary based on the individual blockchain network. Additionally, slashing insurance will be applied to offer greater risk management for users.
Shifting Regulatory Conditions
The relaunch of staking services in the US may signal shifting regulatory conditions. With the new administration’s crypto-focused policy agenda, there may be a more favorable approach to digital asset regulations. The SEC has previously taken a firm stance against staking, classifying it as an unregistered securities offering. However, growing calls for comprehensive digital asset regulations may lead to a change in this stance.
Tips for Staking with Kraken
Before staking with Kraken, consider the following:
- Understand the bonded staking model and the lock-up duration for each token.
- Be aware of the slashing insurance and its implications for risk management.
- Research the eligible tokens and their potential for yield generation.
“Staking is back for some US clients!” – Kraken Pro
As regulatory conditions continue to evolve, it’s essential to stay informed about the latest developments in the cryptocurrency space. For more news and updates, visit Global Crypto News.
