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HomeNewsNo More Fines: Kraken’s Staking Model That Survives U.S. Crypto Crackdowns

No More Fines: Kraken’s Staking Model That Survives U.S. Crypto Crackdowns

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  • Kraken relaunches U.S.-compliant bonded staking, avoiding direct asset custody after 2023 SEC $30M penalty.
  • Bonded staking locks tokens in PoS networks; rewards tied to blockchain validation participation, not platform-managed yields.

Kraken has relaunched a U.S.-compliant staking product after resolving a 2023 SEC lawsuit over its prior offering. The exchange now enables users in 37 states and two territories to stake crypto assets through Kraken Pro, using a bonded staking model.

The redesigned service avoids direct management of customer funds, a key distinction from Kraken’s earlier program. Instead, the platform acts as an intermediary, linking client assets to proof-of-stake (PoS) networks like Ethereum. 

Company representatives state the update aligns with SEC requirements by separating technical operations from financial oversight. In 2023, regulators fined Kraken $30 million for allegedly offering unregistered securities through its original staking program.

Staking allows token holders to secure PoS blockchains by depositing assets into validator nodes. These deposits enable transaction verification, with participants earning yields proportional to their stake. 

Critics argue centralized staking services concentrate network control, while proponents emphasize accessibility for non-technical users. The SEC maintains that certain staking products qualify as investment contracts under federal law, a position contested by industry leaders.

Legal pressures persist across the sector

In June 2023, the SEC sued Coinbase for operating an unregistered staking service, claiming the exchange profited from client deposits without proper disclosures. Both cases hinge on whether staking rewards constitute securities-derived income. Kraken’s revised framework attempts to mitigate this risk by limiting its role to transactional coordination rather than yield aggregation.

Regulatory shifts under SEC Chair Paul Atkins have introduced moderate policy adjustments, as we already reported on ETHNews. The agency recently approved Ethereum-based financial instruments, signaling potential openness to crypto-native mechanisms. However, enforcement actions against unregistered services continue, creating operational uncertainty for exchanges.

Kraken’s relaunch reflects strategic adaptation to regulatory constraints

By automating stake delegation and reducing custodial responsibilities, the platform aims to balance compliance with user demand for yield generation. 

“This model prioritizes network security while adhering to U.S. guidelines” said Mark Greenberg, Kraken’s consumer lead.

While legal ambiguities remain, Kraken’s approach illustrates how crypto enterprises are recalibrating services to operate within existing frameworks.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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