Kristin Smith, CEO of the Blockchain Association, issued a statement in response to the Securities and Exchange Commission’s decision to ban staking on the crypto exchange Kraken.
The Washington, DC-based association, which represents more than 100 crypto companies in a drive on Capitol Hill to reform public policy for blockchain networks, claims the SEC’s activities are part of an ongoing onslaught on a new industry.
“The SEC continues its onslaught on US crypto firms and ordinary investors, controlling by enforcement and diminishing the potential of public blockchain networks in the United States.
Staking is an important component of the cryptocurrency ecosystem, allowing individuals to participate in decentralized networks and providing investors with more choices for earning passive income.”
Kraken was accused by the SEC for “failing to register the offer and sale of its crypto asset staking-as-a-service program Kraken staking, which allows crypto users to lock up their coins and participate in the blockchain validation process in exchange for rewards.”
Kraken reached an agreement, paid a $30 million fine, and promised to remove staking from its platform immediately.
The Blockchain Association is urging Congress to intervene to prevent the crypto business and its participants from shifting abroad.
“Today’s settlement isn’t law, but is another illustration of why we need Congress – not regulators – to develop appropriate legislation for this new technology. Otherwise, the United States risks driving innovation abroad and limiting individual users’ internet freedoms.”