Kraken, a popular cryptocurrency exchange, has made a major announcement that has crypto enthusiasts buzzing with excitement. US clients in 39 states can now once again take advantage of Kraken's crypto staking services. This move marks a significant turning point in the regulatory landscape for cryptocurrencies within the United States.
The decision to reintroduce crypto staking comes nearly two years after Kraken was forced to suspend these services following legal actions taken by the SEC. However, recent shifts in the SEC's approach have given a much-needed boost to Kraken's staking offerings.
With the resumption of staking services, customers in eligible states can stake a total of 17 assets, including big names like Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). To ensure added security for US users' staked assets, Kraken has introduced third-party slashing insurance.
Not content with just staking services, Kraken has been actively expanding its portfolio of offerings. Last December, the company unveiled Ink, a cutting-edge Layer-2 blockchain designed to revolutionize decentralization and interoperability in the crypto space.
While the regulatory environment in the US appears to be thawing, Kraken continues to navigate legal challenges. Recently, a federal judge dismissed the company's argument regarding the SEC's authority over crypto assets. Nevertheless, Kraken remains steadfast in its stance and may contest the case by asserting that their services did not violate securities laws based on the Howey test.
Looking beyond US shores, Kraken's Australian subsidiary faced a hefty $8 million fine from the Australian Securities and Investments Commission (ASIC) for offering unauthorized margin trading products to over 1,100 customers. The lack of regulatory compliance, including the absence of a target market determination (TMD), resulted in significant losses for investors.
In a strategic move, Kraken has opted to shut down its NFT marketplace by February 27, 2025. The company plans to reallocate resources to other ventures as the NFT sector grapples with declining trading activity, oversaturation, and diminishing asset values.
Exciting developments like these can shape the future of cryptocurrencies and have a ripple effect across the digital asset landscape. Stay tuned for more updates from Kraken as they continue to innovate and adapt in the ever-evolving world of crypto.