- The SEC is forcing Kraken to suspend its US staking service, alleging that the platform failed to properly register the program.
- SEC Commissioner Hester Peirce disagrees with the decision.
- She argued that even if Kraken wanted to register its product with the SEC, it would not have been able to do so.
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SEC Chairman Gary Gensler’s latest move, which forced Kraken to shut down its staking service, has come under criticism from the SEC itself.
Not everyone at the SEC is happy with the SEC’s recent move against Kraken.
Commissioner Hester Pearce It was published In yesterday’s letter, she criticized the Securities and Exchange Commission’s decision to shut down the crypto exchange’s staking product.US regulator was announcing Earlier in the day, a settlement was reached with Kraken, where the company agreed to discontinue its US staking service (and pay a $30 million fine) for failing to properly register the program. .
Peirce argued that Kraken could not have registered the staking product even if he wanted to. “In the current situation, no crypto-related products have made it through her SEC’s registration pipeline,” she said, noting that crypto companies have struggled to get a clear regulatory framework from the SEC. I hinted.
“I have known about crypto staking programs for a long time,” she wrote. “Instead of following the path of thinking through staking programs and issuing guidance, we have again chosen to speak through enforcement action,” said SEC Chairman Gary Gensler, along with Rep. Tom Emer. His “regulation by enforcement” approach has been repeatedly criticized by industry leaders and lawmakers. to the point of calling It’s a “jam” strategy [crypto companies] will be violated. ”
Peirce also argued that the settlement did little to make things clearer for other providers of staking-as-a-service. [regulatory] question. She added that many companies have adopted different business models. “Since staking services are not uniform, one-time enforcement actions and boilerplate analysis are sufficient. [sic] Don’t cut it,” she wrote, before describing the SEC’s approach as “passionate and lazy.”
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other crypto assets.