• Kraken agreed to shutter its US crypto-staking operations and pay $30 million to settle SEC charges.
• The SEC met in a closed-door session on Thursday and an announcement may come later in the day.
• Kraken’s staking service offered a 20% APY, promising to send customers staking rewards twice per week.

Kraken Agrees to Shutter US Crypto-Staking Operations

The Securities and Exchange Commission (SEC) announced that crypto exchange Kraken will “immediately” end its crypto staking-as-a-service platform for U.S. customers and pay $30 million to settle charges it offered unregistered securities.

Closed Door Session with SEC

The SEC is meeting in a closed-door session on Thursday to discuss the settlement, though an announcement may come later in the day. The vote comes a day after Coinbase CEO Brian Armstrong publicly discussed the need for more clarity from regulatory bodies like the SEC.

Kraken Staking Services for US Customers

Kraken offers numerous services under its staking umbrella, including a crypto-lending product offering up to 24% yield which is also expected to shut down under the settlement terms. It’s website states that Kraken’s staking service offered a 20% APY, promising customers staking rewards twice per week.

Implications of Settlement for Crypto Regulation

CoinDesk Global Policy and Regulation Managing Editor Nikhilesh De discusses the details of the settlement and possible implications for further regulation of cryptocurrencies by regulatory bodies like the SEC.

Background Information on Case

Bloomberg reported that Kraken was close to settling with the SEC over offering unregistered securities prior to Thursday’s vote on the matter by commissioners at their closed-door meeting