Kraken Revives Crypto Staking for US Customers in 39 States

Kraken Resumes Crypto Staking for US Customers in 39 States

Kraken, a leading cryptocurrency exchange, has resumed its crypto staking services for US customers in 39 states. This move comes after a two-year hiatus following legal action from the Securities and Exchange Commission (SEC).

The exchange had previously shut down its staking-as-a-service platform in February 2023 and paid a $30 million settlement over allegations of offering unregistered securities. Now, customers in eligible states can stake 17 assets, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). Kraken has also introduced third-party slashing insurance to add protection for US users’ staked assets.

In addition to resuming staking services, Kraken has launched Ink, a Layer-2 blockchain designed to enhance decentralization and interoperability. Despite the easing regulatory stance in the US, Kraken continues to face legal battles. A federal judge recently dismissed the company’s argument that the SEC lacks authority over crypto under the “major questions doctrine.” However, Kraken can still challenge the case by asserting that it did not receive clear guidance that its services violated securities laws based on the Howey test.

Outside the US, Kraken’s Australian subsidiary was fined $8 million by the Australian Securities and Investments Commission (ASIC) for offering unauthorized margin trading products to over 1,100 customers. The platform failed to comply with regulatory requirements, including the lack of a target market determination (TMD). ASIC cited these shortcomings as contributing to significant investor losses.

Kraken has also decided to discontinue its NFT marketplace by February 27, 2025. The company will reallocate resources to other ventures as the NFT sector struggles with declining trading activity, oversaturation, and diminishing asset values.