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

Coin WorldThursday, Jan 30, 2025 2:15 pm ET

1min read

Cryptocurrency exchange Kraken has reinstated its staking services for U.S. clients, nearly two years after settling a case with the Securities and Exchange Commission (SEC). The exchange agreed to pay a $30 million fine in February 2023 and shut down its staking-as-service business for American clients as part of the deal.

The new business offering, available via Kraken Pro, allows U.S. users to stake 17 digital assets, including Ethereum (ETH), Solana (SOL), and Cardano (ADA). The service adopts a bonded staking model, requiring users to lock up their tokens for a predetermined period. The lock-up duration varies 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 39 eligible states, demonstrates Kraken's commitment to adapting its offerings in compliance with regulatory changes.

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, requiring users to lock their crypto assets 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 39 eligible states, 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, “We are excited to bring back a brand new product enabling U.S. clients to resume staking with Kraken and

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