• Kraken agrees to pay $30 million in fines and close its crypto-staking services as part of a settlement with the SEC.
• The crypto community has been outraged by the report, calling out Gary Gensler for his anti-crypto agenda.
• Crypto Mom Commissioner Hester Pierce has blasted the SEC for its „lazy and paternalistic“ approach towards regulating crypto.
Kraken Settles with SEC
Kraken, a U.S.-based cryptocurrency exchange, has agreed to pay $30 million in fines and close its crypto-staking services as part of a settlement with the Securities and Exchange Commission (SEC). The regulator alleged that Kraken had offered unregistered securities through their staking program since 2019.
Outrage from Crypto Community
The news has sparked outrage in the crypto community, who called out Gary Gensler’s seeming detestation of crypto. Popular investor Adam Cochran criticized Gensler’s anti-crypto agenda while Ryan Sean Adams noted that the SEC could have taken other measures besides charging Kraken.
Crypto Mom Reacts
Commissioner Hester Pierce, often referred to as ‚the Crypto Mom‘, has also reacted angrily to the news. She blasted the SEC for their „lazy and paternalistic“ approach towards regulating cryptocurrencies.
Following the announcement of the settlement, Chairman Gary Gensler tweeted: “Whether it’s through staking-as-a-service, lending or other means, crypto intermediaries must provide proper disclosures & safeguards required by our laws.“
The settlement between Kraken and the SEC is an example of how difficult it can be for cryptocurrency exchanges operating in U.S., even if they are meeting regulatory requirements elsewhere. It remains to be seen what steps will be taken by regulatory bodies such as CFTC or FINRA going forward when dealing with cryptocurrency related businesses in future settlements or investigations.