![]() ![]() This followed a report on Sunday, which stated the SEC was ready to sue Paxos for the sale of unregistered securities. Yesterday, Paxos announced it would stop minting BUSD, following instructions from the New York Department of Financial Services (NYDFS). However, the actions against Kraken pale compared to the ramifications of the recent actions taken against BUSD. Source: The SEC Attacks Paxos And Binance Under the model, Hoskinson noted the transaction certificate would be two-sided, meaning that both the delegate and the staking pool operator would have to sign the transaction before it is processed. Meanwhile, in preparation for what's to come, Cardano ( ADA-USD) founder Charles Hoskinson has begun to talk about " contingent staking", a form of staking which might better fit regulatory demands. One such solution I recently reviewed in my marketplace is RocketPool ( RPL-USD), which saw a 40% spike in its token's price following the Kraken news. ![]() There is no shortage of decentralized solutions for staking. Commissioner Hester Peirce spoke out against the recent actions against Kraken, saying this was "not an efficient or fair way of regulating".Ĭrypto developers and investors are scrambling to evade or comply with the laws. However, there is at least some dissent within the ranks of the SEC. Some speculate that this latest push against crypto is an attempt to marginalize the industry. It also puts cryptocurrency in direct competition with traditional banking products. This makes cryptocurrencies, in the SEC's mind, a security. With staking, crypto holders can earn interest on their coins. The first blow came late last week, as crypto exchange Kraken was forced to stop offering staking-as-a-service on its platform and agreed to pay a $30 million fine for the sale of unregistered securities. This shocking news follows a significant rally off the Bitcoin ( BTC-USD) lows, which has renewed bullish sentiment.īut even if we are in a new bull, what will the crypto market look like after regulation? Who will be the winners and losers of this new regime? The SEC Attacks Staking And Kraken The Securities and Exchange Commission appears to be making it perfectly clear to the crypto market that it is ready to treat cryptocurrencies as securities, and it is not afraid to take action. This time, the SEC is after staking Binance's dollar stablecoin. Crypto is, once again, under attack from regulatory agencies. ![]()
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