Algorand (ALGO) Foundation CEO Staci Warden said that if the U.S. Securities and Exchange Commission (SEC) puts forward clear guidelines, the central cryptocurrency exchange Kraken and its staking platform could fall under the jurisdiction of this regulatory agency, he said.
Algorand CEO: “Kraken Punished Instead of Guiding”
Kraken was “punishment when it should have been guided,” Warden said on Monday.
Last week, the SEC reached a $30 million settlement with Kraken, and the San Francisco-based exchange “immediately” closed its staking-as-a-service platform to its US-based clients.
Kraken started offering staking services in 2019. However, staking services were promoting the sale of an unregistered security, according to the regulator’s press release.
The SEC could argue that because Kraken is an exchange offering digital assets, it should be regulated like any other exchange that falls under the agency’s jurisdiction, Warden added.
According to Warden, the bigger problem is that regulation for crypto has yet to be defined.
“It’s not the regulation, it’s the way regulation happens,” Warden said. Warden added that regulation through the app and the lack of regulatory clarity make it difficult for crypto platforms to know what the institution wants from them. This, in turn, could have a significant impact on the use of cryptocurrencies, stablecoins and staking, which Warden says are “important principles” for the industry at large.
“They are trying to do the right thing” for the industry, Warden said, citing Kraken and Coinbase as examples. “And with a little better regulatory clarity beforehand, in my view, they would probably have done exactly what the SEC wanted them to do,” Warden added.
*Not investment advice.
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