Since the advent of crypto, the SEC has been hard at work regulating the market in the United States. A work praised by some and condemned by others. Blockchain Association is among those who disapprove of the actions of the SEC. It supports many crypto companies, like Kraken which is currently the subject of legal proceedings brought by the SEC.
SEC VS Kraken: a case that hits the mark
The SEC v. Kraken case dates back to 2019 when the regulator accused the exchange of offering staking services to the general public. The latest development: a possible settlement between Kraken and the SEC.
According to the press release published by the SEC on February 9, Kraken will immediately cease selling securities through crypto asset staking. More explicitly, it will no longer provide crypto staking service in the United States. That’s not all ! The crypto company will also have to pay a $30 million fine. A real blow for the exchange which recently laid off more than 1,000 employees.
Blockchain Association Speaks Out on Latest SEC Actions
In response to the settlement between the SEC and Kraken, the Blockchain Association CEO published A declaration. According to Kristin Smith, this is not a law, but an attack on the crypto industry. “Staking is an important part of the crypto ecosystem, allowing individuals to participate in decentralized networks and giving investors more options for earning passive income,” she explained.
In this same approach, Blockchain Association believes that regulation of the crypto market is mainly up to Congress (not regulators). The latest actions of the SEC are only chilling foreign investors. This could prove fatal for the United States.
As the SEC tries to restore its image, this news risks once again tarnishing its image. For his part, Kraken will have a hard time climbing the slope. Nevertheless, the exchange enjoys the support of most people.
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