{"id":73874,"date":"2023-02-10T09:37:44","date_gmt":"2023-02-10T07:37:44","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73874"},"modified":"2025-09-09T16:49:26","modified_gmt":"2025-09-09T13:49:26","slug":"kraken-to-pay-30-million-to-settle-sec-charges","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/kraken-to-pay-30-million-to-settle-sec-charges\/","title":{"rendered":"Kraken to pay $30 million to settle SEC charges"},"content":{"rendered":"<p>Crypto exchange Kraken has settled the charges brought by the U.S. Securities and Exchange Commission (SEC). This is <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2023-25\">\u0433\u043e\u0432\u043e\u0440\u0438\u0442\u0441\u044f<\/a> on the regulator&#8217;s site.<\/p>\n<p>Earlier, Bloomberg <a href=\"https:\/\/u1f987.com\/en\/news\/sec-investigation-into-kraken-activity-reported\">reported<\/a> that an investigation into the platform was underway. According to the February 9 press release, the agency&#8217;s attention was drawn to the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a> program, the offering and sale of which Kraken \u201cdid not register.\u201d<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Today\u2019s actions should make clear to the market that staking-as-a-service providers must register and provide full, fair and truthful disclosure and investor protection,&#8221; said SEC Chair Gary Gensler.<\/p>\n<\/blockquote>\n<p>Kraken neither admitted nor denied the charges, but agreed to shut down the program and pay $30 million as a penalty.<\/p>\n<p>A company spokesperson told <a href=\"https:\/\/www.theblock.co\/post\/210332\/kraken-settles-sec-charges-over-its-staking-program\">The Block<\/a> that the restrictions apply only to customers in the United States.<\/p>\n<p>SEC Commissioner Hester Peirce criticized the agency&#8217;s actions, saying that enforcement regulation &#8220;is not an efficient and fair way&#8221; to regulate.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">My thoughts on today\u2019s Kraken settlement: <a href=\"https:\/\/t.co\/mijt3MNN4U\">https:\/\/t.co\/mijt3MNN4U<\/a><\/p>\n<p>\u2014 Hester Peirce (@HesterPeirce) <a href=\"https:\/\/twitter.com\/HesterPeirce\/status\/1623796583807451139?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Under current market conditions, crypto offerings are not going through the SEC registration process. \u2026 Rather than charting staking programs and issuing guidance, we again chose to speak through enforcement actions,&#8221; Peirce noted.<\/p>\n<\/blockquote>\n<p>She said the greatest concern is the closure of the program, &#8220;which served people well&#8221;.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201c<span data-descr=\"a system of relations in which the authorities provide for the basic needs of citizens, and citizens in return allow the authorities to dictate the models of their public and private behaviour\" class=\"old_tooltip\">Paternalistic<\/span> and lazy regulator stops at a decision like the one in this agreement: do not initiate a public process to develop a workable registration method that provides investors with valuable information, just shut it down,\u201d<\/p>\n<p>\u2014 added the official.<\/p><\/blockquote>\n<p>Coinbase CEO Brian Armstrong backed Peirce&#8217;s view. He said the SEC&#8217;s requirement to register staking as a securities offering is &#8220;disingenuous&#8221; due to the lack of a clear path for doing so.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Well said. There was no way to register (a disingenuous offer).<\/p>\n<p>\u201cUsing enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.\u201d <a href=\"https:\/\/t.co\/6wVZZbQt23\">https:\/\/t.co\/6wVZZbQt23<\/a><\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1623806589198303232?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The exchange&#8217;s chief legal officer, Paul Grewal, noted that the Kraken news did not affect Coinbase&#8217;s product offerings.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Our customers\u2019 rewards are tethered to realities. They depend on the rewards paid by the protocol and commissions that we disclose. We don\u2019t play games. <a href=\"https:\/\/t.co\/5E476oCmyl\">https:\/\/t.co\/5E476oCmyl<\/a><\/p>\n<p>\u2014 paulgrewal.eth (@iampaulgrewal) <a href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1623795965420535808?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>SEC actions drew ire from members of the community. Adam Cochran, partner at venture firm Cinneamhain Ventures, called Gensler &#8220;an agent of the anti-crypto agenda&#8221; and asked why the same standards were not applied to <a href=\"https:\/\/u1f987.com\/en\/news\/how-the-collapse-of-ftx-and-alameda-research-will-affect-the-crypto-industry\">the fallen FTX<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/2<\/p>\n<p>Gensler is not a regulator. He is an agent of an anti-crypto agenda, who only aims to wield his power as cudgel for those he doesn\u2019t agree with.<\/p>\n<p>So the big question then, is why didn\u2019t FTX get this treatment?<\/p>\n<p>Whose pocket is he in?<\/p>\n<p>\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) <a href=\"https:\/\/twitter.com\/adamscochran\/status\/1623778227641544705?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>CEO of the Blockchain Association Christine Smith said the Kraken situation is a textbook example of why Congress should work on creating a regulatory framework with industry players rather than the SEC.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The following statement is attributed to <a href=\"https:\/\/twitter.com\/KMSmithDC?ref_src=twsrc%5Etfw\">@KMSmithDC<\/a> in response to today\u2019s settlement between the SEC and Kraken:<a href=\"https:\/\/t.co\/32KysvKfz0\">https:\/\/t.co\/32KysvKfz0<\/a> <a href=\"https:\/\/t.co\/8vkWZXB6a2\">pic.twitter.com\/8vkWZXB6a2<\/a><\/p>\n<p>\u2014 Blockchain Association (@BlockchainAssn) <a href=\"https:\/\/twitter.com\/BlockchainAssn\/status\/1623807581645840386?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>US Representative Tom Emmer, who has repeatedly criticized Gensler <a href=\"https:\/\/u1f987.com\/en\/news\/us-congressman-says-ftx-crisis-a-failure-of-crypto-industry-regulation\">, noted the important role of staking \u201cin building the next generation of the internet.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">To be clear, staking enables more people to participate in building the next generation of the internet.<a href=\"https:\/\/twitter.com\/GaryGensler?ref_src=twsrc%5Etfw\">@GaryGensler<\/a>\u2019s regulatory purgatory strategy hurts everyday Americans the most \u2014 leaving them in the dust while these opportunities are accessible offshore. <a href=\"https:\/\/t.co\/8YlSuBVj6L\">https:\/\/t.co\/8YlSuBVj6L<\/a><\/p>\n<p>\u2014 Tom Emmer (@GOPMajorityWhip) <a href=\"https:\/\/twitter.com\/GOPMajorityWhip\/status\/1623799363590934529?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The regulatory purgatory strategy of Gary Gensler harms everyday Americans the most, leaving them in the dust while these opportunities are available abroad,&#8221; Emmer wrote.<\/p>\n<\/blockquote>\n<p>Not everyone in the community welcomed the Commission. MicroStrategy&#8217;s former head Michael Saylor <a href=\"https:\/\/u1f987.com\/en\/news\/michael-saylor-the-microstrategy-founders-biography-and-views\">noted<\/a> that the SEC chair &#8220;understands the importance of self-custody.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\u00abNot your keys \u2026 \u00bb \u2014 <a href=\"https:\/\/twitter.com\/GaryGensler?ref_src=twsrc%5Etfw\">@GaryGensler<\/a>. The <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\">@SECGov<\/a> understands the importance of self-custody. <a href=\"https:\/\/t.co\/oxPkFeJ77k\">https:\/\/t.co\/oxPkFeJ77k<\/a><\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) <a href=\"https:\/\/twitter.com\/saylor\/status\/1623786388847034368?ref_src=twsrc%5Etfw\">February 9, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Before that, Saylor <a href=\"https:\/\/u1f987.com\/en\/news\/michael-saylor-says-regulation-is-necessary-for-crypto-industry-growth\">supported strict regulation<\/a> of the digital assets industry. In his view, this is a necessary element of its growth.<\/p>\n<p>Against the Kraken program\u2019s closure, the Internal Revenue Service <span data-descr=\"Internal Revenue Service\" class=\"old_tooltip\">IRS<\/span> filed a motion to compel enforcement of an order issued to the exchange in 2021, according to <a href=\"https:\/\/www.coindesk.com\/policy\/2023\/02\/09\/irs-seeks-court-approval-to-identify-kraken-crypto-customers\/\">CoinDesk<\/a>. The order seeks information on the exchange&#8217;s customers and their transactions as part of tax collection.<\/p>\n<p>The company stressed that one of Kraken&#8217;s guiding principles is ensuring user security and privacy.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The situation in this case had not previously given Kraken the opportunity to weigh its options. We look forward to resolving our problems in court,&#8221; the press office clarified.<\/p>\n<\/blockquote>\n<p>As reported, last year the SEC brought<a href=\"https:\/\/u1f987.com\/en\/news\/in-2022-the-sec-increased-its-crypto-enforcement-caseload-by-50\"> 30 cases,<\/a> related to cryptocurrencies. <a href=\"https:\/\/u1f987.com\/en\/news\/sec-chair-makes-cryptocurrency-regulation-a-priority-for-2023\">Gensler<\/a> later described regulating digital assets as a priority for 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kraken has settled the charges brought by the U.S. Securities and Exchange Commission (SEC), according to the regulator&#8217;s site.<\/p>\n","protected":false},"author":1,"featured_media":73875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[193,36,128],"class_list":["post-73874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-kraken","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73874"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73874\/revisions"}],"predecessor-version":[{"id":73876,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73874\/revisions\/73876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73875"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}