Earlier this week, reports surfaced that Kraken is being investigated for securities violations in relation to their staking program, which has been running since 2019. On Thursday, the crypto exchange said it will “immediately” end crypto staking for U.S. customers. It will also pay a US$30 million fine to settle Securities and Exchange Commission (SEC) charges that it offered unregistered securities via this program.
And industry figures are starting to respond. But what is staking? And what is this all about?