Kraken is working with the US Securities and Exchange Commission (SEC) to settle the charges, according to an industry source with knowledge of the matter. cryptocurrency Agreed to shut down staking operations.
Speaking to CoinDesk, the industry source said the SEC will discuss and vote on the deal at a behind-the-scenes commission meeting Thursday afternoon, and an announcement could be made later in the day.
SEC Expected to Make An Announcement at 00:00
A second source expects an announcement to be made around 00:00 Turkish time.
Kraken offers a range of services under its staking umbrella, including a crypto lending product that offers returns of up to 24%. The source said that this is also expected to be closed under the deal.
Kraken’s staking service offered 20% APY, promising to send staking rewards to customers twice a week, according to its website.
Bloomberg reported on Wednesday that Kraken is close to an agreement with the SEC to offer unregistered securities.
The election comes a day after Coinbase CEO Brian Armstrong tweeted that he had heard rumors that the SEC would prevent retail customers from engaging in staking, a technique for promising crypto tokens to manage blockchains like Ethereum. The SEC declined to comment on Armstrong’s comments Wednesday night. Coinbase also offers its own staking services.
SEC Chairman Gary Gensler has previously said he believes staking through intermediaries like Kraken can meet the requirements of the Howey Test, a decades-old Supreme Court case widely used as a measure of whether something is a security under US law.
*Not investment advice.
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