Kraken Relaunches Staking Services in the US with 17 Digital Assets

Kraken Resumes Staking Services in the US

Cryptocurrency exchange Kraken has announced the relaunch of its staking services for US clients, marking a significant return after a two-year hiatus. The platform now offers staking options for 17 digital assets, including Solana and Ethereum, across 37 states.

Staking allows investors to earn rewards by contributing to the validation and security of blockchain networks. Kraken's Global Head of Consumer, Mark Greenberg, emphasized the importance of this relaunch, highlighting its potential to enhance blockchain security and provide value to clients.

Regulatory Challenges and Settlement

The relaunch follows Kraken's $30 million settlement with the SEC in February 2023. The settlement resolved allegations that the exchange had failed to register its staking-as-a-service program. This regulatory scrutiny, led by former SEC Chair Gary Gensler, prompted Kraken to pause its staking services in the US.

How Kraken's Staking Works

Kraken's staking product utilizes bonded staking, where clients lock their crypto assets with the network for a set period. The exchange delegates these assets to validators, who are responsible for transaction validation and block production. Rewards are distributed to clients after deducting fees.

Regulatory Landscape Shifts

The relaunch occurs amid shifting regulatory dynamics, with the new administration under President Donald Trump signaling interest in collaborating with the crypto sector. The appointment of Mark Uyeda as SEC Chair until a permanent leader is confirmed suggests potential changes in regulatory approaches to cryptocurrency.

This move by Kraken reflects the evolving regulatory environment and the exchange's commitment to providing staking opportunities to US clients while ensuring compliance with legal requirements.