Kraken Relaunches Staking for U.S. Clients in 37 States After Regulatory Pause

The top-rated cryptocurrency platform, Kraken, has brought back its onchain staking service for users in 37 states and two U.S. territories via its Kraken Pro platform. It is a significant comeback for a platform that first suspended its American staking activities due to issues with compliance

to U.S. rules and regulations. Kraken explained:

“Starting today, clients residing in eligible states will be able to securely stake eligible tokens via Kraken Pro. These clients will be able to participate in bonded staking, which locks up/bonds cryptoassets to the network for a specific period of time.”

Proof-of-Stake and Regulatory Challenges in the U.S.

The development, Mark Greenberg, head of Consumer at Kraken, describes, is a substantial win for America’s crypto community and not only rewards its users but also strengthens security for a blockchain. The re-release affirms Kraken’s commitment to opening access to staking and compliance with new legislation, Greenberg added

Following its well-publicized settlement with the U.S. Securities and Exchange Commission (SEC) in February 2023, Kraken has decided to open up staking again. The company settled claims that its program amounted to an unregistered securities offering, agreed to pay a $30 million fine, and closed its staking services for U.S. clients. 

The updated service is being offered at a time when American authorities are trying to create more precise rules for operations involving cryptocurrencies.

Proof of Stake (PoS) is a prevalent agreement mechanism in the blockchain sector, with participants locking in networks and being rewarded for it in return. In its general practice, controversy has been fueled about whether staking providers can form unregistered security, and, as such, regulators have closely monitored them ever since.

Kraken Expands Staking with 17 Supported Cryptocurrencies

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Currently, 17 cryptocurrencies are supported by the new Kraken staking service, including Cardano (ADA), Polkadot (DOT), Solana (SOL), and Ethereum (ETH). In order to give its consumers even more staking possibilities, the platform promised that its integration of restacking will span supported states. Kraken confirmed:

“Clients in select U.S. states and territories will now be able to use Kraken’s onchain staking product to stake 17 assets, including ETH, SOL, DOT and ADA. Kraken’s restaking integration will also be made available in eligible states.”

As Greenberg explained it, “We serve as a bridge, providing a convenient gateway for users to enter into the universe of crypto through a safe and comfortable platform.” This highlights Kraken’s role in promoting the use of cryptocurrencies.

The shifting compliance environment, in turn, will make Kraken’s new staking service a blueprint for platforms that desire to escape compliance headaches but provide key service to U.S.-based investors.

Conclusion

For cryptocurrency investors in the United States, the return of staking at Kraken is a big step forward since it provides safe access to rewards and strengthens blockchain security. Kraken keeps expanding its products according to regulations and providing access to a growing cryptocurrency market as laws change.

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FAQs

1. Who can stake on Kraken?
   Clients in 37 U.S. states and two territories can access staking via Kraken Pro.
2. Which assets are supported?
   Kraken supports 17 assets, including ETH, SOL, DOT, and ADA.
3. How does staking work?
   Users stake crypto, which is delegated to validators. Rewards are earned after fees.
4. Why was staking paused?
   After an SEC settlement, Kraken stopped U.S. staking in 2023, but it has since resumed.