Kraken Revives Crypto Staking for US Customers Amid Shifting Regulatory Landscape

Kraken has reintroduced on-chain staking for U.S. customers in 39 states, the cryptocurrency exchange announced on Thursday, marking a major development in the regulatory environment for digital assets.

Under the program, Kraken customers will be able to stake 17 different cryptocurrencies, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA), through the Kraken Pro platform. The company also highlighted that staked assets will be covered by third-party slashing insurance, providing an added layer of security.

“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire U.S. crypto space,” Mark Greenberg, Kraken global head of consumer, said.

The return of Kraken’s staking services is a sign of changing regulatory sentiment in the U.S., particularly with the SEC’s enforcement approach shifting under the current administration. In February 2023, the SEC accused Kraken of offering unregistered securities through its staking-as-a-service program, leading to the exchange’s $30 million settlement with the regulator, and the subsequent shutdown of staking for U.S. clients.

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With the political climate now favoring crypto innovation, Kraken has seized the opportunity to reintroduce staking in a compliant manner.

Staking has been a critical component of the crypto ecosystem, allowing users to earn rewards while supporting blockchain networks. The SEC’s crackdown on staking services had created uncertainty in the industry, but Kraken’s ability to bring the service back suggests a more favorable regulatory path ahead.

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