Hi HODLers,
What an eventful week for the Crypto World!
We keep seeing more news about crypto institutions being cut off the financial system as with Binance prevented to do USD wires.
SEC bullies Kraken
It seems it is ALWAYS the case that the regulator goes after the more compliant prey. This is just discgusting. Kraken has been fined $30mn for providing Staking Services to its customers.
What did they do wrong?
"Companies like Kraken can offer investment contracts and investment schemes, but they have to have full, fair and truthful disclosure. And this puts the investors who watch your program in a better position. That's our basic bargain. They were not complying with that basic law,"
They have been fined for lack of disclosures about how their customers were earning yield? Seriously?
And then he adds this:
“Kraken knew how to register, others know how to register, it's just a form on our website … And if they want to offer staking, we're neutral, come in [and] register because investors need that disclosure.”
Like if Kraken knew they just had to fill a form at the SEC to be good, why wouldn't they have done it? So Bullshit...
This decision has raised criticisms in the Crypto Industry but also inside the SEC. As an example, the SEC Commissioner Hester Peirce calling it a "paternalistic" and "lazy" move.
I personally use the Revolut app to DCA and they just introduced a Staking program during the past few months. I have to dig deeper but I thought I had read they were using Kraken's services... I hope not, otherwise I do not know when I will be able to unstake and probably will be staking for 0% yield...
Stay safe out there,