Top American crypto exchange Kraken has announced a new staking product for customers in the U.S.—nearly two years after regulators sued the company for offering a similar service.
"The staking product that we launched is distinct from the one we settled with the SEC in February 2023," Kraken spokeswoman told Decrypt. "Kraken is providing mere administrative support for staking on the blockchain by connecting client tokens to the network."
Kraken Pro is a new service that will enable American clients in 37 US states and two U.S. territories to start staking their digital assets today.
"These clients will be able to participate in bonded staking, which locks up/bonds crypto assets to the network for a specific period of time," A spokesperson from the exchange added.
The process of staking involves the process. "locking-up" cryptocurrency to keep a blockchain's network running. Those who hold proof-of-stake assets—such as Ethereum (ETH), the second biggest digital coin—pledge it to the network by sending it to a specific blockchain address. Once they've done that, stakers receive rewards for as long as they keep their assets locked up.
The process can be controversial. The Securities and Exchange Commission fined Kraken $30 million in 2023 and told it to stop its stake service. The regulator's former chairman, Gary Gensler, said at the time that the exchange was making profit by allowing customers to stake unregistered securities.
Paul Atkins is now the SEC’s chairman. He has been more crypto-friendly since the November election of Donald Trump. The U.S. commander-in-chief has pledged to support the digital assets industry.
Kraken's Global Head of Consumer, Mark Greenberg, said in a statement: "We are excited to bring back a brand new product enabling U.S. clients to resume staking with Kraken and play a significant role in bolstering the underlying security of blockchain networks."
Cardano Solana Polkadot and other top cryptocurrency require that users stake.
Stacy Elliott is the editor.