Kraken, one of the oldest cryptocurrency exchanges, has reintroduced blockchain staking services for its American clients, proving that the environment of cryptocurrency assets in the US is changing positively.
The exchange announced on Thursday that users in 39 eligible states can participate in bonded staking with Kraken Pro. Tokens will be locked up for specific durations based on the specified blockchain.
The relaunch comes after Donald Trump’s swearing-in as the 47th President of the United States. Under the previous administration, Kraken was accused by the US Securities and Exchange Commission (SEC) of issuing unregistered securities.
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Regulatory Changes In The Crypto Landscape Favour Kraken Exchange
The new US president, Donald Trump, has indicated that strict regulations against cryptocurrency implemented by the previous administration, especially those enforced by the SEC, will soon end.
Kraken consented to terminate its staking-as-a-service platform for US clients in February 2023. The crypto firm paid a $30 million financial penalty following the SEC’s allegations that it provided unregistered securities.
However, since Gary Gensler left office, the exchange has returned its staking service with new solutions to satisfy user demand. However, the announcement indicates that this service is limited to qualifying states.
Not all US States Are Eligible for this Service
The list of eligible states is available on the crypto exchange’s staking webpage. In his remarks, Mark Greenberg, the company’s Global Head of Consumer, stated that there have long been discussions regarding how best to reintroduce staking back into the US because they believe it’s a fundamental aspect of cryptocurrency investment.
The crypto exchange’s users in the selected states can stake 17 assets, including ETH, ADA, SOL, and DOT. According to Kraken, it protects US clients’ assets by offering slashing insurance through third-party vendors.
Slashing insurance protects users who stake their crypto in proof-of-stake blockchains from losses through “slashing.”
