Kraken Resumes Crypto Staking for US Customers in 39 States
- Kraken resumes staking in 39 US states after halting services in 2023 due to SEC enforcement, adding slashing insurance.
- Legal battles continue despite eased regulations, with a federal judge rejecting Kraken’s challenge to the SEC’s authority.
- Kraken shuts down its NFT marketplace by February 2025, shifting focus as the NFT sector faces declining activity and value.
Kraken has reintroduced crypto staking for US clients across 39 states. This reflects a significant shift in the country’s crypto regulatory environment.
The move comes nearly two years after Kraken halted its staking services due to legal action from the SEC.
Changes in the SEC Gives Boost to Kraken’s Crypto Staking Services
The change reflects a broader shift in US crypto policy. Donald Trump’s presidency has signaled a break from previous enforcement actions, including those aggressively pursued by the SEC.
Kraken had previously shut down its staking-as-a-service platform in February 2023. It also paid a $30 million settlement over allegations of offering unregistered securities.
Customers in eligible states can now stake 17 assets, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). Kraken has also introduced third-party slashing insurance to add protection for US users’ staked assets.
The exchange has been expanding its offerings beyond staking. In December, the company launched Ink, a Layer-2 blockchain designed to enhance decentralization and interoperability.
Despite the easing regulatory stance in the US, Kraken continues to face legal battles. A federal judge recently dismissed the company’s argument that the SEC lacks authority over crypto under the “major questions doctrine.”
However, Kraken can still challenge the case by asserting that it did not receive clear guidance that its services violated securities laws based on the Howey test.
Outside the US, Kraken’s Australian subsidiary was fined $8 million by the Australian Securities and Investments Commission (ASIC). Regulators found that the platform offered unauthorized margin trading products to over 1,100 customers.
It failed to comply with regulatory requirements, including the lack of a target market determination (TMD). ASIC cited these shortcomings as contributing to significant investor losses.
Also, Kraken has decided to discontinue its NFT marketplace by February 27, 2025. The company will reallocate resources to other ventures as the NFT sector struggles with declining trading activity, oversaturation, and diminishing asset values.
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