Kraken Shuts Down Staking

Kraken has agreed to shut down its crypto-staking operations in order to handle ongoing settlements with the SEC, according to a report from CoinDesk.

❗Why It Matters

The headlines prompted a swift, negative response in ETH, which moved from $1,626 to $1,572 at the onset of the news. 

According to CoinDesk's reporting, "The SEC will be discussing further behind 'closed doors' and anticipates another announcement later this afternoon."

🧐 Wait, What?

The news doesn't exactly come out of nowhere. 

Yesterday, Coinbase CEO Brian Armstrong tweeted "We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that's not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen."

Kraken does offer multiple staking options and was preparing to release a new staking opportunity this week as well, however, that as of now seems to be on pause.

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