George Miller
The recent departure of the SEC’s anti-crypto chairman has positively impacted the crypto market. Notably, Kraken, a prominent cryptocurrency exchange, has announced the return of its staking service for customers in the U.S.
Background on Kraken’s Staking Suspension
On February 9, 2023, the SEC mandated that Kraken cease its staking service, claiming the platform was offering unregistered securities. This was compounded by a $30 million fine due to the ambiguous regulatory environment surrounding cryptocurrencies.
SEC Chair Gary Gensler emphasized the necessity for crypto intermediaries to provide clear disclosures and safeguards when dealing in investment contracts involving customer tokens, as outlined in a press release here.
Kraken’s staking service enables users to earn rewards by temporarily locking their cryptocurrencies, contributing to the security of blockchain networks and staking protocols. Kraken estimates annual rewards based on the prevailing conditions of the network.
hodl? nah. STAKE with Kraken
Staking is back for some US clients!
Stake anytime
APRs that will make HODLers jealous
The security you deserve while earning on $ETH, $DOT, $ADA & more
Start here pic.twitter.com/28lInrxEJE
— Kraken Pro (@krakenpro) January 30, 2025
Kraken has confirmed that users in 39 eligible U.S. states can now engage in bonded staking via Kraken Pro. Customers in these states can stake 17 different assets, including ETH, SOL, DOT, and ADA. Furthermore, U.S. users will benefit from third-party slashing insurance, providing additional security against potential network penalties.
Influence of Trump Administration on SEC Regulation
The cryptocurrency sector is currently experiencing a notable change in the SEC’s regulatory strategy under the new administration of U.S. President Donald Trump.
On January 23, the SEC released Staff Accounting Bulletin (SAB) No. 122, which officially repealed SAB 121, a measure established under the previous SEC leadership that was often viewed as antagonistic toward crypto. SAB 121 mandated that firms holding crypto assets recognize both a liability and a corresponding asset for these holdings. With its revocation, companies adhering to SAB 121 can expect significant modifications in their financial reporting practices.