{"id":550073,"date":"2023-02-10T03:44:00","date_gmt":"2023-02-10T00:44:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/kraken-down-sec-commissioner-rebukes-own-agency-over-recent-action\/"},"modified":"2023-02-10T03:44:00","modified_gmt":"2023-02-10T00:44:00","slug":"kraken-down-sec-commissioner-rebukes-own-agency-over-recent-action","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/kraken-down-sec-commissioner-rebukes-own-agency-over-recent-action\/","title":{"rendered":"# \u2018Kraken Down\u2019 \u2014 SEC commissioner rebukes own agency over recent action"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3844d43a7f2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3844d43a7f2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/kraken-down-sec-commissioner-rebukes-own-agency-over-recent-action\/#%E2%80%9D_%E2%80%98Kraken_Down_%E2%80%94_SEC_commissioner_rebukes_own_agency_over_recent_action_%E2%80%9C\" >&#8221; \u2018Kraken Down\u2019 \u2014 SEC commissioner rebukes own agency over recent action &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_%E2%80%98Kraken_Down_%E2%80%94_SEC_commissioner_rebukes_own_agency_over_recent_action_%E2%80%9C\"><\/span>&#8221; \u2018Kraken Down\u2019 \u2014 SEC commissioner rebukes own agency over recent action &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvYTEwYjYzZmEtMTM5NS00YjY2LTkxNTMtNjVjNWY1NmQyYzBmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>United States Securities and Exchange Commission (SEC) commissioner Hester Pierce has publicly rebuked her own agency over the shut down of Kraken&#8217;s crypto staking program in the United States.\u00a0<\/p>\n<p>The commissioner <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/statement\/peirce-statement-kraken-020923\">blasted<\/a> her regulator in a Feb. 9 statement called &#8220;Kraken Down,&#8221; noting that regulation by enforcement \u201cis not an efficient or fair way of regulating\u201d in an emerging industry, stating:\u00a0<\/p>\n<blockquote><p>Today, the SEC shut down Kraken\u2019s staking program and counted it as a win for investors. I disagree and therefore dissent.<\/p><\/blockquote>\n<p>Peirce&#8217;s statement also slammed the regulator for shutting down a \u201cprogram that has served people well.&#8221;<\/p>\n<p>\u201cUsing enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating. Moreover, staking services are not uniform, so one-off enforcement actions and cookie-cutter analysis does not cut it,&#8221; she said.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">My thoughts on today&#8217;s Kraken settlement: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/mijt3MNN4U\">https:\/\/t.co\/mijt3MNN4U<\/a><\/p>\n<p>\u2014 Hester Peirce (@HesterPeirce) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HesterPeirce\/status\/1623796583807451139?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Peirce implied the regulator was \u201clazy and paternalistic\u201d and suggested the SEC should have initiated a \u201cpublic process to develop a workable registration process that provides valuable information to investors.\u201d <\/p>\n<p>Coinbase CEO and co-founder Brian Armstrong agreed with Peirce\u2019s comments in a Feb. 9 tweet, suggesting that requiring businesses to register its staking services is a \u201cdisingenuous offer\u201d as there is no clear path to registration.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Well said. There was no way to register (a disingenuous offer).<\/p>\n<p>\u201cUsing enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/6wVZZbQt23\">https:\/\/t.co\/6wVZZbQt23<\/a><\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1623806589198303232?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Earlier this week, Armstrong said he had heard \u201crumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers,\u201d and said \u201cit would be a terrible path for the U.S.\u201d as it would further drive crypto businesses offshore.<\/p>\n<p>Coinbase is currently the subject of a SEC probe similar to the one which resulted in the Kraken settlement, which it revealed in an Aug. 9 SEC <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/d18rn0p25nwr6d.cloudfront.net\/CIK-0001679788\/304d84bd-3534-4bba-a27c-d1c962a79fc6.pdf\">filing<\/a> was also related to its staking services.<\/p>\n<p>On Feb. 9, the SEC announced that it had reached a $30 million settlement with crypto exchange Kraken, saying it failed \u201cto register the offer and sale of their crypto asset staking-as-a-service program.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today we charged Kraken with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent.<\/p>\n<p>\u2014 U.S. Securities and Exchange Commission (@SECGov) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SECGov\/status\/1623777921499336710?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Kraken said in a Feb. 9 blog <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.kraken.com\/post\/17619\/settlement\/\" data-amp=\"https:\/\/blog-kraken-com.cdn.ampproject.org\/c\/s\/blog.kraken.com\/post\/17619\/settlement\/?amp=1\">post<\/a> that it would still offer staking services to non-U.S. customers through a subsidiary, but according to the SEC announcement the firm is permanently banned from providing staking services to U.S. residents, even if they sought to register it with the regulator.<\/p>\n<p><strong>Related: <\/strong><strong><em>Getting rid of crypto staking would be a \u2018terrible path\u2019 for the US \u2014 Coinbase CEO<\/em><\/strong><\/p>\n<p>Peirce, also known as the SEC\u2019s \u201cCrypto Mom,\u201d has been a strong advocate for the crypto industry during her time at the regulator.<\/p>\n<p>Peirce has previously proposed a \u201csafe harbor\u201d for token projects which are looking to build decentralized networks, in which the network developers would receive a three-year grace period where they were exempt from SEC legal action, with an updated version of the proposal <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/public-statement\/peirce-statement-token-safe-harbor-proposal-2.0\">released<\/a> on Apr. 13, 2021.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/kraken-down-sec-commissioner-rebukes-own-agency-over-recent-action\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; \u2018Kraken Down\u2019 \u2014 SEC commissioner rebukes own agency over recent action &#8220; United States Securities and Exchange Commission (SEC) commissioner Hester Pierce has publicly rebuked her own agency over the shut down of Kraken&#8217;s crypto staking program in the United States.\u00a0 The commissioner blasted her regulator in a Feb. 9 statement called &#8220;Kraken Down,&#8221;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":550074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/a10b63fa-1395-4b66-9153-65c5f56d2c0f.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74957,74956,75540,96725,74898,133582,70934],"class_list":["post-550073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-brian-armstrong","tag-coinbase","tag-kraken","tag-press-release","tag-sec","tag-staking","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=550073"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/550074"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=550073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=550073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=550073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}