• The SEC recently took action against Kraken’s staking service.
• Hester Peirce, or “Crypto Mom”, has voiced her disagreement with the SEC’s decision.
• Coinbase CEO Brian Armstrong also believes that exchanges were not given a fair pathway to registration.
SEC Cracks Down on Kraken Staking Service
The Securities and Exchange Commission (SEC) recently took legal action against the crypto exchange Kraken’s staking service.
Crypto Mom Voices Disagreement
Hester Peirce – also known as Crypto Mom – issued a statement arguing that the SEC’s enforcement action is neither „efficient nor fair,“ and that exchanges were never given a realistic pathway to registration.
Coinbase CEO Agrees
Coinbase CEO Brian Armstrong stood in agreement with Crypto Mom’s statement, stating that his exchange was not given an appropriate way to register its own similar product.
What is Staking?
Staking services allow customers to pool their assets together into giant node pools for staking rewards. This technology allows users to earn rewards for holding certain cryptocurrencies over long periods of time without having to actively trade them.
The SEC’s enforcement action against Kraken’s staking service has been met with criticism from both within and outside of the agency, as questions remain around whether exchanges have been provided realistic pathways for registering such products.