{"id":20116,"date":"2023-02-10T12:39:52","date_gmt":"2023-02-10T20:39:52","guid":{"rendered":"https:\/\/coinnetworknews.com\/kraken-ceo-calls-on-congress-to-protect-us-crypto-industry-following-settlement-with-sec-over-staking-program-regulation-bitcoin-news\/"},"modified":"2023-02-10T12:39:52","modified_gmt":"2023-02-10T20:39:52","slug":"kraken-ceo-calls-on-congress-to-protect-us-crypto-industry-following-settlement-with-sec-over-staking-program-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/kraken-ceo-calls-on-congress-to-protect-us-crypto-industry-following-settlement-with-sec-over-staking-program-regulation-bitcoin-news\/","title":{"rendered":"Kraken CEO Calls on Congress to Protect US Crypto Industry Following Settlement With SEC Over Staking Program \u2013 Regulation Bitcoin News"},"content":{"rendered":"
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The CEO of crypto exchange Kraken, Jesse Powell, has called on Congress to pass a law to protect the U.S. crypto industry after the Securities and Exchange Commission (SEC) took action against his trading platform over its crypto staking service.<\/strong><\/p>\n

Kraken\u2019s CEO Responds to SEC Action<\/h2>\n

Kraken CEO Jesse Powell urged Congress to pass a law to protect the domestic crypto industry on Thursday after the U.S. Securities and Exchange Commission (SEC) charged his crypto trading platform over its staking service.<\/p>\n

The Kraken boss tweeted:<\/p>\n

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Congress must act to protect the domestic crypto industry and U.S. consumers who will now be going offshore to obtain services no longer available in the U.S.<\/p>\n<\/blockquote>\n

As part of the settlement<\/a> with the securities regulator, Kraken agreed to end its crypto staking program for U.S. clients and pay $30 million in disgorgement, prejudgment interest, and civil penalties.<\/p>\n

Kraken clarified<\/a> in a blog post on Thursday:<\/p>\n

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Staking services for non-U.S. clients will continue uninterrupted. Non-U.S. clients can continue to stake and unstake assets, as well as automatically earn and stake rewards, as usual.<\/p>\n<\/blockquote>\n

Following the securities watchdog\u2019s enforcement action over Kraken\u2019s staking program, SEC Commissioner Hester Peirce issued a statement<\/a> disagreeing and dissenting from her agency\u2019s action. \u201cA paternalistic and lazy regulator settles on a solution like the one in this settlement: do not initiate a public process to develop a workable registration process that provides valuable information to investors, just shut it down,\u201d she wrote.<\/p>\n

Responding to Commissioner Peirce\u2019s statement, Powell tweeted, \u201cSome guidance would be appreciated.\u201d He added that the SEC\u2019s approach of \u201cThis is wrong but I won\u2019t tell you how to do it right. Want to find out if X works? Try it and see what happens\u201d does not help the crypto industry or consumers. \u201cWe aren\u2019t anti-regulation but we need a clear path to operate,\u201d he stressed.<\/p>\n

In a follow-up tweet, the Kraken executive opined:<\/p>\n

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I honestly hope that somebody proves, in court, that there is a legal, user-friendly version of custodial staking that can be offered to U.S. consumers. It\u2019ll be a brutal, lengthy, expensive fight and a massive distraction but the industry and the USA will be extremely grateful.<\/p>\n<\/blockquote>\n

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\nTags in this story
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crypto staking<\/a>, cryptocurrency staking<\/a>, Jesse Powell<\/a>, Kraken<\/a>, kraken crypto<\/a>, Kraken SEC<\/a>, Kraken SEC staking<\/a>, Kraken staking<\/a>, SEC<\/a>, SEC action against staking<\/a>, SEC staking<\/a>, staking<\/a>, staking as a service<\/a><\/div>\n<\/div>\n

What do you think about the SEC going after crypto staking programs at exchanges? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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