Kraken Reopens Staking Services in 39 U.S. States, Signaling Regulatory Shift

Cryptocurrency exchange Kraken has announced the reopening of its on-chain staking service for users in 39 U.S. states, supporting 17 assets including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). This move signals a shift in U.S. crypto regulation and renewed investor confidence in crypto staking.

Kraken's decision to reinstate staking programs comes after its regulatory settlement with the U.S. Securities and Exchange Commission (SEC) in February 2023. The settlement required Kraken to end its staking operations and pay a $30 million penalty. The SEC charged the exchange with non-registration of its staking program, alleging that Kraken deceived users through deceptive marketing of lucrative offerings that lacked essential warning information about risks.

The reopening of Kraken's staking services reflects positive changes in U.S. crypto regulation, with industry professionals predicting a return to the original form of SEC-led strict policies from the previous administration. Kraken Pro clients will have access to the new staking service, allowing users to lock their tokens as part of bonded staking for pre-determined periods through the system.

Kraken has faced continuous legal disputes with the SEC since its inception, with the agency filing a new lawsuit against the exchange after their February 2023 settlement. The SEC charged Kraken with providing securities brokerage services without appropriate registration and illegally mixing user funds without the required licensing to do business.

Despite these legal issues, Kraken has maintained its position as one of the longest-operating cryptocurrency exchanges in the marketplace. The reintroduction of staking services has gained approval from the U.S. crypto user community, with investors depending 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. Upcoming regulatory changes are expected to create better conditions in the United States for crypto-staking platforms and decentralized finance operations.