Kraken Reopens Staking for Users in 39 U.S. States

Kraken reopens staking for users in 39 U.S. states, supporting 17 assets, signaling regulatory shifts and renewed investor confidence in crypto staking.

Kraken has announced the reopening of its on-chain staking service for users in 39 states across the United States. Users of the exchange platform will have the ability to stake 17 assets including Ethereum (ETH), Solana (SOL), Polkadot (DOT) and Cardano (ADA). Kraken chose to reopen its staking services following its regulatory settlement with the U.S. Securities and Exchange Commission (SEC) which forced it to terminate the services back in February 2023.

The settlement required Kraken to end its staking operations and it needed to pay $30 million in penalty. SEC authorities charged the exchange with non-registration of its staking program through which users could secure their tokens to receive rewards. Public officials state that Kraken deceived its users through deceptive marketing of lucrative offerings that lacked essential warning information about risks.

The decision by Kraken to reinstate staking programs reflects positive changes in U.S. crypto regulation after their previous legal issues. Crypto exchanges encounter less regulatory obstacles from the current administration in power. Multiple industry professionals predict that the SEC-led strict policies from the previous administration will be returned to their original form.

Kraken Staking Reopening Signals Brighter Future for U.S. Crypto Platforms

Kraken Pro clients will have access to the new staking service that the platform offers. Users of the platform can lock their tokens as part of bonded staking for pre-determined periods through the system. The timeframe that impacts staking depends on the blockchain network used for the stake. Participating in blockchain network security leads participants to receive compensation during this process.

Kraken has faced continuous legal disputes with the SEC since the start of its operations. The SEC filed a new lawsuit against Kraken after their settlement with the agency in February 2023. Kraken faced legal charges for providing securities brokerage services without an appropriate registration. The regulatory authorities charged Kraken Exchange with illegally mixing user funds and without the required licensing to do business.

The legal issues have not prevented Kraken from maintaining its position as one of the longest-operating cryptocurrency exchanges in the marketplace. Staking service accessibility has recently gained approval from the United States crypto user community. Investors depend on staking as their primary method to generate passive income from their digital assets.

The movement of Kraken toward reintroducing crypto services may prompt other exchanges to restart similar financial operations. The upcoming regulatory changes will create better conditions in the United States for crypto-staking platforms and decentralized finance operations.