TLDR
- Kraken has restarted staking services in 39 U.S. states after a nearly two-year suspension, now offering staking for 17 cryptocurrencies including ETH ($3,259.98), SOL ($235.34), DOT ($6.18), and ADA ($0.95)
- The relaunch follows a $30 million settlement with the SEC in February 2023 over allegations of offering unregistered securities through their previous staking program
- The exchange has implemented third-party slashing insurance to protect users from potential losses during the staking process
- Kraken plans to expand its staking service to more U.S. states as regulations permit
- The company has also added three new tokens (PENGU, SIGMA ($0.04), and ME) to its trading platform
Cryptocurrency exchange Kraken has relaunched its staking services across 39 U.S. states, marking a return to the American market after nearly two years of absence. The new platform supports 17 different cryptocurrencies, including popular assets such as Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA).
The relaunch comes after Kraken’s February 2023 settlement with the Securities and Exchange Commission (SEC), which resulted in a $30 million fine and the suspension of its U.S. staking operations. The SEC had determined that Kraken’s previous staking service constituted an unregistered securities offering.
Under the new system, users can delegate their assets through Kraken Pro to validators responsible for securing blockchain networks and processing transactions. Customers receive staking rewards after fee deductions, with the process now including additional security measures.
Mark Greenberg, Kraken’s Global Head of Consumer, expressed enthusiasm about the development.
“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire U.S. crypto space,” he stated.
The exchange has implemented several new safety features, including third-party slashing insurance. This protection helps minimize the risk of asset loss during the staking process, providing users with added security against unexpected losses.
Kraken’s staking service operates through a bonded staking model, which locks cryptocurrencies to the network for specific periods. This approach allows users to participate in network validation while earning rewards for their contributions.
The company plans to expand its staking services to additional U.S. states, though this expansion depends on local regulatory requirements. Kraken has committed to working with authorities to ensure ongoing compliance with applicable regulations.
In addition to the staking relaunch, Kraken has expanded its trading options by listing three new tokens: PENGU, SIGMA, and ME. This expansion demonstrates the exchange’s continued effort to provide users with diverse trading opportunities.
The new staking service represents a modified approach to comply with current regulations while maintaining the core benefits of cryptocurrency staking for users. Through Kraken Pro, customers can now participate in network validation and earn rewards within a regulated framework.
The relaunch affects users in 37 states and two territories, with plans for further expansion. Kraken emphasizes its role as a bridge between traditional finance and cryptocurrency markets, helping users access various crypto activities through familiar interfaces.
For user protection, all staking activities now include clear documentation of risks and rewards. The exchange has implemented transparent fee structures and detailed explanations of the staking process for each supported cryptocurrency.
Kraken continues to maintain staking services for non-U.S. customers, who were unaffected by the previous suspension. The global platform operates alongside the newly launched U.S. service, though with some differences in available features and supported assets.
The exchange’s return to U.S. staking services comes at a time when cryptocurrency markets are seeing increased institutional interest and regulatory scrutiny. Kraken’s approach reflects these market conditions with its emphasis on compliance and security.
The platform now supports various staking options, including proof-of-stake currencies and other staking mechanisms. Each supported asset has specific minimum staking requirements and reward structures based on network parameters.
The most recent update to Kraken’s staking service includes the integration of restaking capabilities in eligible states, adding another layer of functionality for users looking to maximize their cryptocurrency holdings.
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