Tag: SEC

‘Midnight Massacre:’ SEC Crackdown on Crypto Staking Services Prompts Speculation of Further Enforcement Actions – Regulation Bitcoin News

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On Feb. 9, 2023, the cryptocurrency community learned of the U.S. Securities and Exchange Commission’s (SEC) crackdown on staking services. The SEC fined Kraken, a cryptocurrency exchange, $30 million for offering an “unregistered offering” related to its U.S. staking service. Digital currency advocates are now debating what constitutes a yield product versus a noncustodial solution that is not considered a security. Fox News journalist Eleanor Terrett predicts more regulatory crackdowns on the crypto space in the coming weeks, including enforcement actions against exchanges and banks. Observers Weigh in on the…

SEC enforcement against Kraken opens doors for Lido, Frax and Rocket Pool

The United States Securities and Exchange Commission is ramping up pressure on the crypto sector. On Feb. 9, the SEC reached a $30 million settlement with Kraken over the centralized staking program it offered to its users. The news of the crackdown sent the price of Bitcoin (BTC) to a three-week low as investors became fearful of the regulatory enforcement. Ether’s (ETH) price also corrected on the news, cementing the token’s worst-performing day of 2023. While the overall crypto market was down after the SEC announcement, bright spots arose, with…

Kraken CEO Calls on Congress to Protect US Crypto Industry Following Settlement With SEC Over Staking Program – Regulation Bitcoin News

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The CEO of crypto exchange Kraken, Jesse Powell, has called on Congress to pass a law to protect the U.S. crypto industry after the Securities and Exchange Commission (SEC) took action against his trading platform over its crypto staking service. Kraken’s CEO Responds to SEC Action Kraken CEO Jesse Powell urged Congress to pass a law to protect the domestic crypto industry on Thursday after the U.S. Securities and Exchange Commission (SEC) charged his crypto trading platform over its staking service. The Kraken boss tweeted: Congress must act to protect…

US lawmakers question SEC chair on timing of Sam Bankman-Fried’s arrest

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Two members of the United States House Financial Services Committee are calling on Securities and Exchange Commission chair Gary Gensler “regarding the timing of the charges filed against FTX founder Sam Bankman-Fried” based on his scheduled appearance at a hearing. In a Feb. 10 notice, committee chair Patrick McHenry and Representative Bill Huizenga, who chairs the Oversight and Investigations Subcommittee, said the timing of Bankman-Fried’s charges and arrest in the Bahamas raised “serious questions about the SEC’s process and cooperation with the Department of Justice”. The two lawmakers called on…

SEC Enforcement Is the Wrong Way to Regulate Crypto

Gensler and his defenders might counter that he has consistently warned that most, if not all, tokens are securities. But the industry’s gripe goes beyond that. It’s that, other than the occasional public invitations to “come in and talk to us,” there’s been no real effort to collaboratively develop a regulatory framework that accommodates the unique, decentralized features of this technology. Worse, industry leaders say, the SEC practices “regulation through enforcement,” with the Kraken suit being a case in point, which leaves everyone on their toes. Source

Coinbase’s Staking Service Faces Questions After Kraken’s SEC Settlement

Coinbase Chief Legal Officer Paul Grewal argued on Twitter on Thursday that his exchange’s staking business is “fundamentally different” from Kraken’s, which he described as a “yield product.” And he reiterated this in a statement to CoinDesk on Friday, saying that “Coinbase’s staking program is not affected by [the Kraken] news. Staking on Coinbase continues to be available and staked assets continue to earn protocol rewards. What’s clear from [the] announcement is that Kraken was essentially offering a yield product. Coinbase’s staking services are fundamentally different and are not securities.…

SEC chair issues warning to crypto firms after action on Kraken staking

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United States Securities and Exchange Commission Chair Gary Gensler issued a warning to crypto companies to “come in and follow the law” after the agency announced a settlement with crypto exchange Kraken. Appearing on CNBC’s Squawk Box on Feb. 10, Gensler said crypto exchanges should register with the SEC in order to be compliant with regulations in the U.S., claiming that many within the industry were “choosing” not to do so. According to the SEC chair, the business models of many crypto projects were “rife with conflict,” claiming they needed…