Kraken Resumes Crypto Staking for US Customers in 39 States 🔄

Kraken has reintroduced crypto staking services for US clients across 39 states, signaling a shift in the country's crypto regulatory environment. This move comes nearly two years after halting services due to SEC legal action.

The change parallels a broader shift in US crypto policy, influenced by Donald Trump's presidency's break from prior enforcement actions. Previously, Kraken shuttered its staking platform in February 2023, paying a $30 million settlement over allegations of offering unregistered securities.

Eligible customers can now stake 17 assets, including Ethereum, Solana, Polkadot, and Cardano. Kraken has also introduced third-party slashing insurance to protect US users’ staked assets.

In addition, Kraken is expanding beyond staking, having launched Ink, a Layer-2 blockchain, in December to improve decentralization and interoperability.

Despite regulatory easing, Kraken faces legal battles with a federal judge recently dismissing its argument against SEC's oversight under the "major questions doctrine." However, Kraken can challenge the case by asserting a lack of guidance on securities laws violations based on the Howey test.

Outside the US, Kraken's Australian subsidiary was fined $8 million by ASIC for offering unauthorized margin trading products to over 1,100 customers, failing to comply with regulatory requirements, including a target market determination.

Additionally, Kraken plans to shutter its NFT marketplace by February 2025, reallocating resources amidst declining trading activity, oversaturation, and diminishing asset values in the sector.