Kraken Resumes Staking Services in 39 U.S. States
1min read Cryptocurrency exchange Kraken has announced the reopening of its on-chain staking service for users in 39 states across the United States. The exchange will support staking for 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.
Kraken Pro clients will have access to the new staking service, which allows users to lock their tokens as part of bonded staking for pre-determined periods. 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. Despite these challenges, the exchange has maintained its position as one of the longest-operating cryptocurrency exchanges in the marketplace. Staking service accessibility has recently 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.
