In a significant development for the U.S. crypto industry, Kraken, one of the world’s leading cryptocurrency exchanges, has relaunched its staking service after being forced to shut it down two years ago due to pressure from the Securities and Exchange Commission (SEC).
This move signals a major shift in the regulatory environment, as recent political changes in the U.S. have paved the way for a more crypto-friendly approach.
Kraken’s Staking Service: What Does It Offer?
Kraken’s new staking platform will support 17 different cryptocurrencies, including Ethereum (ETH) and Solana (SOL).
Staking is a process in which investors lock up their crypto assets to help secure blockchain networks. In return, they earn staking rewards, similar to earning interest on a savings account. For many investors, this provides a passive income opportunity without needing to actively trade their assets.
The relaunch marks a significant turnaround for Kraken, which had to terminate its staking services in 2023 after settling a $30 million lawsuit with the SEC. At the time, the SEC accused Kraken of offering an unregistered securities product, a move widely seen as an example of “regulation by enforcement”—where authorities crack down on crypto companies without first establishing clear rules.
Regulatory Shift: Gensler Out, Peirce In
The revival of Kraken’s staking service is largely tied to the political and regulatory shift in the U.S. following the reelection of Donald Trump as president.
Under former SEC Chairman Gary Gensler, the agency aggressively pursued lawsuits against crypto companies, leading to an uncertain and often hostile regulatory environment. However, Gensler has now been replaced, and the SEC has established a Crypto Task Force, led by Hester Peirce, who is well-known in the industry for her pro-crypto stance.
Dubbed “Crypto Mom”, Peirce has been an outspoken critic of Gensler’s enforcement-heavy approach and has long advocated for clear, transparent regulations that allow for innovation while protecting investors.
This regulatory shift could mark the beginning of a more predictable and favorable environment for the crypto industry in the U.S., encouraging growth, institutional adoption, and further investment.
What Does This Mean for the Crypto Industry?
Kraken’s return to staking is a strong signal that the U.S. is moving towards a more accommodating stance on cryptocurrencies.
- For investors, this means greater opportunities to earn passive income through staking without fear of abrupt regulatory crackdowns.
- For crypto companies, it suggests that the U.S. market may soon become more attractive again, leading to increased development and innovation.
- For the industry as a whole, it could set a precedent for other exchanges and blockchain projects to reintroduce or expand staking services, further integrating crypto into the mainstream financial system.
With clearer regulations on the horizon, the U.S. may finally be positioning itself as a global leader in the cryptocurrency space—rather than pushing innovation offshore.
