U.S. SEC targets crypto 'staking' with Kraken crackdown [View all]

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Source: Reuters via MSN

-Crypto exchange Kraken agreed to shut down its cryptocurrency staking service and pay $30 million in penalties to settle U.S. Securities and Exchange Commission charges that it failed to register the program, the agency said on Thursday, in a move that could cause headaches for platforms with similar offerings.

The settlement marks the SEC's first crackdown on staking, a common service offered at both centralized and decentralized crypto exchanges, including most of the major exchanges in the United States such as Coinbase and Binance US.

Read more: https://www.msn.com/en-us/money/companies/us-sec-targets-crypto-staking-with-kraken-crackdown/ar-AA17iUVj

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Staking your digital currency is like earning interest on your money from the bank. The yield on crypto was high, some around 20%, as opposed to the fraction of a percent you get today from banks. The American consumer loses here. This settlement only applies to the U.S.