Kraken Down ’ — SEC commissioner rebukes own agency over recent action

By Clark

” Today, the SEC shut down Kraken’s staking program and counted it as a palm for investors. I differ and thus dissent,” said Commissioner Hester Pierce.

United States Securities and Exchange Commission( SEC) Commissioner Hester Pierce has intimately rebuked her own agency over the shutdown of crypto exchange Kraken’s crypto staking program in the United States.

The manager blasted her agency in aFeb. 9 statement named “ Kraken Down, ” arguing that regulation by enforcement “ is not an effective or fair way of regulating ” an arising assiduity. She wrote

“Today, the SEC shut down Kraken’s staking program and counted it as a palm for investors. I differ and thus dissent. ”

Peirce’s statement also slammed the controller for shutting down a “ program that has served people well. ”

“ Using enforcement conduct to tell people what the law is in an arising assiduity isn’t an effective or fair way of regulating. also, staking services aren’t invariant, so one- off enforcement conduct and cookie- knife analysis doesn’t cut it, ” she wro.

Peirce inferred the controller was “ lazy and paternalistic ” and suggested the SEC should have initiated a “ public process to develop a workable enrollment process that provides precious information to investors. ”

Coinbase CEO and co-founder Brian Armstrong agreed with Peirce’s commentary in aFeb. 9 tweet, suggesting that taking businesses to register its staking services is a “ disingenuous offer ” as there’s no clear path to enrollment .

Before this week, Armstrong said he’d heard “ rumors that the SEC would like to get rid of crypto staking in the U.S. for retail guests, ” and said “ it would be a terrible path for the U.S. ” as it would further drive crypto businesses offshore.

Coinbase is presently the subject of a SEC inquiry analogous to the bone that redounded in the Kraken agreement, which it revealed in anAug. 9 SEC form was also related to its staking services.

On Feb. 9, the SEC blazed that it had reached a $ 30 million agreement with Kraken, saying it failed “ to register the offer and trade of their crypto asset staking-as-a-service program. ”

Kraken said in aFeb. 9 blog post that it would still offer staking services tonon-U.S. guests through an attachment, but according to the SEC advertisement, the establishment is permanently banned from furnishing staking services to U.S. residents, indeed if they sought to register it with the controller.

Peirce, also known as the SEC’s “ Crypto Mom, ” has been a strong advocate for the crypto assiduity during her time at the controller.

Peirce has preliminarily proposed a “ safe harbor ” for token systems which are looking to make decentralized networks, in which the network inventors would admit a three- time grace period where they were pure from SEC legal action. She released a streamlined interpretation of her offer on April 13, 2021.