• The Securities and Exchange Commission (SEC) recently cracked down on Kraken’s staking service.
• Hester Peirce, known as ‘Crypto Mom’ within the SEC, voiced her dissent to the decision, claiming that it is neither efficient nor fair.
• Coinbase CEO Brian Armstrong backed up Peirce’s claims, stating that his exchange was given no way to register its similar product with the SEC.
SEC Cracks Down on Kraken’s Staking Service
The Securities and Exchange Commission (SEC) recently issued a crackdown against Kraken’s staking service on Thursday. This enforcement action has been met with dissent from one of its members, Hester Peirce – better known as ‚Crypto Mom.‘
Crypto Mom Sounds Off Against Gensler’s Attack
Peirce issued a statement arguing that the SEC’s enforcement style is not only inefficient but also unfair. She suggested that crypto-related offerings are not making it through the SEC’s registration pipeline due to questions related to specific disclosures, accounting quirks, and whether to register the staking program on a whole or token-by-token basis.
Coinbase CEO Backs Up Crypto Mom’s Claims
Brian Armstrong – Coinbase CEO – was quick to back up Peirce’s claims on Thursday by asserting that his exchange was given „no way to register“ its similar product with the SEC. He further added that he felt the SEC’s offer was „disingenuous.“
What is Staking?
Staking services allow customers pool their assets together into giant nodes which then get rewarded for validating transactions within certain decentralized networks such as Tezos or Ethereum 2.0. These rewards are then shared amongst those who staked their tokens in proportion to how much they had put in initially – making it an attractive option for retail investors looking for passive income streams through cryptocurrencies.
Conclusion
The fundamental question at hand remains whether exchanges were ever given a realistic pathway to registration in order for them to offer staking services legally without repercussions from regulatory authorities – something both Crypto Mom Hester Peirce and Coinbase CEO Brian Armstrong agree upon.