• Kraken has agreed to pay $30 million in fines and shut down its crypto-staking services as part of a settlement with the SEC.
• The crypto community has been outraged by the report, calling out Gary Gensler for his anti-crypto agenda.
• Commissioner Hester Pierce (the Crypto Mom) blasted the SEC for its „lazy and paternalistic“ approach towards regulating crypto.
Kraken Reaches Settlement with the SEC
Kraken, a U.S.-based cryptocurrency exchange, has been hit with $30 million in penalties and agreed to shut down its crypto staking program as part of the settlement with the Securities and Exchange Commission (SEC) for offering unregistered securities. As part of the settlement, Kraken would shut down its cryptocurrency staking program that it had been offering its customers since 2019.
Crypto Community Calls Out Anti-Crypto Agenda
The settlement news has sparked outrage in the crypto community, who called out Gensler’s seeming detestation of crypto. Popular investor and Cinneamhain Ventures partner, Adam Cochran, has called out Genler’s anti-crypto agenda while Ryan Sean Adams noted that the SEC could have taken other measures rather than charging Kraken.
SEC Chairman Gary Gensler’s Reaction
SEC Chairman Gary Gensler had previously said staking could be classified as securities and just after announcement he tweeted: “Today @SECGov charged Kraken for the unregistered offer & sale of securities thru its staking-as-a-service program…Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries must provide the proper disclosures & safeguards required by our laws.“
The Crypto Mom Reacts
Commissioner Hester Pierce (the Crypto Mom) blasted the SEC for its „lazy and paternalistic“ approach towards regulating crypto in response to this news.
Conclusion
Kraken was fined $30 million by the SEC due to offering unregistered securities and shutting down their cryptocurrency staking program that they were providing their customers since 2019 The crypto community reacted angrily at this news calling out Gary Gensler’s anti-crypto agenda while Commissioner Hester Pierce criticised them for their “lazy and paternalistic” approach to regulation.
