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Kraken Relaunches Staking in U.S.: Aligns with Trump’s Pro-Crypto Policies

4 February 2025 Daily Feed Tags: , ,
Kraken Relaunches Staking in U.S.: Aligns with Trump’s Pro-Crypto Policies

Kraken Relaunches Crypto Staking in the U.S., Aligning with Trump’s Pro-Crypto Policies

Kraken has relaunched its crypto staking service in the U.S., expanding access to 37 states and two territories, aligning with President Donald Trump’s pro-crypto policies. This significant move aims to bolster the American crypto landscape.

  • Kraken relaunches staking in 37 U.S. states and two territories
  • Trump’s executive order supports crypto growth
  • 17 cryptocurrencies available for staking
  • SEC settlement paves way for relaunch

On January 30th, Kraken, a leading cryptocurrency exchange, relaunched its crypto staking service in the United States. This move, now available in 37 states and two territories, comes amidst a shifting regulatory landscape under President Donald Trump, who has taken bold steps to foster a more favorable environment for digital currencies.

Kraken’s relaunch is not just a business decision—it’s a reflection of the changing tides in U.S. cryptocurrency regulation. The service supports 17 assets, including popular ones like Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). Staking involves holding your cryptocurrencies in a wallet to support the operations of a blockchain network, and in return, you earn rewards similar to interest. Kraken uses a method called “bonded staking,” where assets are delegated to validators who maintain the network’s integrity. Think of it as planting your crypto in a digital garden and watching it grow rewards!

This relaunch follows Kraken’s $30 million settlement with the SEC over unregistered securities charges, which led to the temporary shutdown of its staking service in February 2023. The settlement cleared the path for Kraken to re-enter the U.S. staking market, but it also highlights the ongoing battle between innovation and regulation. The SEC’s stance on staking as a potential security remains a point of contention, yet the new SEC Crypto Task Force, led by Commissioner Hester Peirce, aims to provide more clarity.

President Trump’s recent executive order, titled “Strengthening American Leadership in Digital Financial Technologies,” is a game-changer. This order aims to dismantle restrictive policies from previous administrations, signaling a pro-crypto stance. It establishes the President’s Working Group on Digital Asset Markets, chaired by AI and crypto advisor David Sacks, tasked with reviewing and reforming crypto regulations. One of the order’s key moves is banning federal agencies from creating or promoting a central bank digital currency (CBDC), a move that many in the crypto community celebrate as a victory for decentralization. Moreover, Trump’s pardon of Silk Road founder Ross Ulbricht sends a clear message about his administration’s stance on crypto freedom and privacy.

Mark Greenberg, Kraken’s Global Head of Consumer, expressed enthusiasm about the relaunch, stating:

“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire US crypto space. We are excited to bring back a brand new product enabling US clients to resume staking with Kraken and play a significant role in bolstering the underlying security of blockchain networks.”

However, it’s not all sunshine and rainbows. While Kraken’s settlement with the SEC allows for the relaunch, the broader regulatory environment remains a tightrope walk for crypto businesses. The promise of a more crypto-friendly environment is exciting, but it’s crucial to balance optimism with realism. The industry must continue to push for clear regulations while advocating for the principles of decentralization and privacy that underpin this revolution.

As we celebrate these developments, let’s not forget the darker side of the crypto world. Scammers and unrealistic price predictions still lurk in the shadows, and we must remain critical and vigilant. The promise of decentralization and financial freedom is noble, but it’s our responsibility to ensure it’s realized in a way that benefits all, not just the few who can navigate the complexities of this brave new world.

Key Takeaways and Questions

  • What is the significance of Kraken relaunching its staking service in the U.S.?

    The relaunch signifies Kraken’s return to staking services post-SEC settlement, boosting the U.S. crypto space and aligning with the new administration’s favorable policies.

  • How does Trump’s executive order impact the cryptocurrency industry?

    The order aims to ease restrictions, fostering a more supportive environment for crypto, which could lead to increased adoption and innovation.

  • What cryptocurrencies are supported for staking on Kraken?

    Kraken supports staking for 17 assets, including Ethereum, Solana, Polkadot, and Cardano. You can find the full list here.

  • Why was Kraken’s previous staking service shut down?

    Kraken shut down its staking service in 2023 and paid a $30 million SEC settlement over unregistered securities charges. For more details on the SEC settlement, see related discussions.

  • What is the role of the President’s Working Group on Digital Asset Markets?

    The group, chaired by David Sacks, reviews prior crypto policies and proposes regulatory changes to foster a supportive environment for digital financial technologies.

  • How does the pardon of Ross Ulbricht reflect on Trump’s stance on cryptocurrency?

    The pardon indicates a pro-crypto stance by Trump, aligning with efforts to support the cryptocurrency industry. Community reactions to Trump’s policies can be found on Reddit.

Disclaimer: Staking and investing in cryptocurrencies involve risks. Always do your own research and never invest more than you can afford to lose.