On Thursday, the U.S. Securities and Exchange Commission announced it had reached a settlement with Kraken, the California-based cryptocurrency exchange, related to a staking feature offered to the company’s customers. Kraken agreed to pay a fine of $30 million and end the product.
After SEC Chair Gary Gensler threatened crypto companies that “the runway is getting shorter” for firms to register with his agency, the latest action increases his influence over the industry by penalizing Kraken, one of the largest global crypto firms. The move will also likely further accusations that Gensler is taking an approach of “regulation by enforcement,” rather than creating new rules to govern the crypto ecosystem.
