Kraken Revives Staking for U.S. Customers After SEC Settlement

Crypto exchange Kraken has reintroduced its staking services for U.S. customers, nearly two years after settling a case with the Securities and Exchange Commission (SEC). The new business offering via Kraken Pro will allow U.S. users to stake 17 digital assets, including Ethereum (ETH), Solana (SOL), and Cardano (ADA).

The service will adopt a bonded staking model, which requires users to lock up their tokens for a predetermined period. The lock-up duration will vary based on the individual blockchain network. Kraken also stated that slashing insurance will be applied, offering greater risk management for users.

Kraken's reintroduction of a staking product for U.S. customers marks a significant shift in the landscape of cryptocurrency services following past regulatory challenges. This product, now compatible with 37 states and two territories, demonstrates Kraken's commitment to adapting its offerings in compliance with regulatory changes.

Kraken unveils a new staking product for U.S. customers nearly two years after regulatory challenges—marking a pivotal moment in the crypto exchange’s evolution. The metamorphosis of Kraken’s staking service comes in light of past controversies surrounding its operations. In February 2023, the SEC claimed Kraken was profiting from unregistered securities, leading to the abrupt cessation of its staking product. However, a new regulatory environment has emerged under a different leadership, with SEC chairman Paul Atkins adopting a more supportive stance towards the crypto industry. This shift allows Kraken to cautiously reintroduce its staking capabilities while incorporating necessary changes to align with compliance standards.

The new staking service enables clients to engage in bonded staking. This method requires users to lock their crypto assets, such as holding popular tokens like ERC-20 compliant Ethereum (ETH), to support blockchain network operations. Users who participate can anticipate earning rewards during the staking period, thus enhancing both the potential for passive income and the underlying security of the blockchain network.

With Kraken’s staking product now available in 37 states and two territories, it opens doors for a broader range of U.S. crypto investors to engage with key cryptocurrencies such as Cardano, Solana, and Polkadot, which require staking for operational functionality. Kraken’s Global Head of Consumer, Mark Greenberg, expressed enthusiasm over this development, noting, “