SEC Chairman: Staking-as-a-Service providers must register and provide disclosures and investor protection measures

2023-02-10 10:57:12

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ChainCatcher news, regarding the settlement between Kraken and the U.S. SEC and the termination of staking services for U.S. users, SEC Chairman Gary Gensler stated, "Whether through staking as a service, lending, or other means, cryptocurrency intermediaries must provide the appropriate disclosures and protections required by our securities laws when offering investment contracts in exchange for investors' tokens. Today's action should signal to the market that staking as a service providers must register and provide comprehensive, fair, and truthful disclosures and investor protections."

Previously reported, the U.S. Securities and Exchange Commission (SEC) announced on Thursday that the cryptocurrency exchange platform Kraken will "immediately" cease its cryptocurrency staking as a service platform for U.S. customers and will pay a $30 million fine to the SEC to settle charges of offering unregistered securities. Kraken's parent companies, Payward Ventures, Inc. and Payward Trading Ltd., will terminate staking services and projects. These projects have been offering staking services to the public since at least 2019. (source link)

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