• The SEC recently fined Kraken $30 million for not registering its staking-as-a-service program in the US.
• Juthica Chou, Kraken’s Head of OTC Options Trading, revealed that institutional trading interest in crypto remains high despite the SEC’s regulatory crackdown.
• She mentioned that there are “possible assets with opportunities both for short- and long-term investments”.
SEC Fines Kraken for Not Registering Staking as a Service
The U.S. Securities and Exchange Commission (SEC) recently penalized San Francisco-based crypto exchange Kraken with a fine of $30 million for failing to register its staking-as-a-service program in the U.S. Immediately following this announcement, two of Kraken’s registered companies – Payward Ventures, Inc., and Paywayrd Trading Ltd., – agreed to settle the fine issued by the SEC
Insitutional Interest in Crypto Remains High
According to Juthica Chou, head of over-the counter (OTC) options trading at Kraken, institutional investors remain interested in cryptocurrencies despite the recent regulatory crackdown by the SEC. She stated that trading interest is still very strong for proof-of-work networks as well as proof-of stake networks, adding that many clients are trying to gain directional exposure and see possible assets with opportunities both for short and long term investments.
Kraken’s Response To The Fine
Kraken responded to the fine by immediately closing down its staking service to U.S customers and agreeing to pay a sum of $30 million as part of their settlement agreement with the SEC.
Future Outlook For Staking
Chou remains optimistic about future prospects for staking as she believes that institutional interest in crypto continues to remain strong even after these events have taken place. Despite this optimism, she has urged potential investors to be aware of all regulations before investing into any form of cryptocurrency asset class due its highly volatile nature.
Cryptocurrencies have become increasingly attractive investment vehicles due their potential returns but also come with certain risks associated with them such as regulatory uncertainty or market volatility which can quickly erase gains if not managed properly.. As such it is important for potential investors to take necessary precautions before investing into any form of digital currency asset class or related services like staking offered by exchanges like Kraken so they understand what they are getting themselves into