kraken can't buy crypto

In response to an SEC enforcement action, Kraken suspended its crypto asset staking services for U.S. residents and returned staked assets by June 29, 2023.

Oct 26, 2024 at 10:47 am

Kraken Can No Longer Offer Crypto Trading Services to U.S. Residents

Step 1: Background

On March 9, 2023, the U.S. Securities and Exchange Commission (SEC) charged Kraken with failing to register its crypto asset staking-as-a-service program.

Step 2: Enforcement Action

The SEC's consent order required Kraken to pay $30 million in penalties and cease all crypto asset staking services to U.S. customers.

Step 3: Kraken's Response

Kraken complied with the SEC's order and suspended its staking services for U.S. residents. It also clarified that this suspension did not affect non-U.S. customers.

Step 4: Impact on U.S. Customers

U.S.-based Kraken users with active staking positions had until June 29, 2023, to claim their assets. After the deadline, Kraken automatically unstaked all remaining crypto assets and returned them to their owners.

Step 5: Alternative Crypto Trading Platforms

Following Kraken's suspension, several alternative crypto trading platforms, such as Coinbase, Binance, and Gemini, became popular among U.S. users. These platforms offer a range of crypto trading services, including staking programs that comply with SEC regulations.

Step 6: Ongoing Impact

The SEC's enforcement action against Kraken has had a significant impact on the crypto industry. It has led to increased scrutiny of staking programs and raised questions about the regulatory landscape for cryptocurrencies in the United States.