• The US Securities and Exchange Commission (SEC) reached a $30 million settlement with Kraken for their staking-as-a-service platform.
• Staci Warden, CEO of the Algorand Foundation, believes that lack of regulatory clarity led to this development.
• According to Warden, if Kraken’s protocol had been more of a “pass-through profit-taking from the underlying protocol” then it might have been within the purview of the SEC.
SEC’s Crypto Crackdown Highlights Lack of Regulatory Clarity
The U.S. Securities and Exchange Commission (SEC) recently reached a $30 million settlement with crypto exchange Kraken after they halted their U.S.-based crypto staking service due to what the regulator said was promoting the sale of an unregistered security. Algorand Foundation CEO Staci Warden weighed in on this development, saying that ultimately this highlights lack of regulatory clarity when it comes to crypto regulations in America.
Kraken Punished Rather Than Given Guidance
Warden stated that if clearer guidelines had been provided by the SEC, then Kraken’s staking service could have very well been within the purview of the regulator rather than punished for it. She further added that if Kraken’s protocol had been more like a “pass-through profit-taking from the underlying protocol” then it would not have faced such troubles from the regulator.
Issues With Crypto Regulations
According to Warden, although some regulations for digital assets do exist in America, there are still many issues surrounding them as cryptocurrency is still largely unregulated in most parts of world including America itself. This lack of regulatory clarity often leads to confusion both among investors and companies who wish to enter into this space as they are uncertain about how exactly they should go about doing so without running into any legal complications down the line..
Positive Approach Needed
Despite these issues however, Warden believes that regulators need to take a positive approach towards companies like Kraken who offer services related to digital assets instead punishing them for something which is just not clearly defined yet according to laws and regulations.
Conclusion
In conclusion it can be said that while some progress has been made when it comes to regulating cryptocurrencies and other digital assets, there is still much work left ahead before all parties involved can be on one page regarding these matters which will ultimately benefit everyone involved in one way or another as more clarity will lead more people entering into this space which in turn will help ensure its growth and sustainability over time