The main result is the SEC forcing Kraken to shut down its staking services in the United States, claiming that the platform failed to properly register the program. SEC Commissioner Hester Pierce disagrees with the decision. He argued that Kraken would not be able to register its product with the SEC even if it wanted to. Share this article
SEC Chairman Gary Gensler’s latest move—forcing Kraken to shut down its staking services—is facing criticism from within the agency itself.
SEC is to blame
Not everyone at the SEC is happy with the agency’s recent move against Kraken.
Commissioner Hester Pierce published a letter yesterday in which she criticized the Securities and Exchange Commission’s decision to shut down crypto exchange’s staking products. The US regulator announced earlier in the day that it had reached a settlement with Kraken in which the company would cease its services in the US (and pay a $30 million fine) for failing to properly register the program. Had agreed.
Peirce argued that even if Kraken wanted to, it would not be able to register its mortgage products. “In the current environment, crypto-related offerings are not making it through the SEC’s registration pipeline,” she said, indicating crypto companies are having trouble getting a clear regulatory framework from the SEC.
“We have known about the Cryptocurrency program for a long time,” she wrote. “Rather than taking the route of thinking through mortgage programs and issuing guidance, we again chose to speak through an enforcement action.” SEC Chairman Gary Gensler has been criticized on several occasions by industry leaders and lawmakers alike for his “regulation by enforcement” approach, with Congressman Tom Emmer calling it a “jamming” strategy. [crypto companies] in violation.
Peirce also claimed that the settlement did little to provide more clarity for other staking as service providers, as the very product itself created “a host of complications”. [regulatory] question.” He added that many companies adopted different business models. “Staking services are not uniform, so one-time enforcement actions and cookie-cutter analysis [sic] Don’t cut it, she wrote, before describing the SEC’s approach as “patriarchal and lazy.”
Disclaimer: At the time of writing, the author of this piece held BTC, ETH and several other crypto assets.
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