Kraken, a leading cryptocurrency exchange, has announced the launch of a new onchain staking product for US clients. This marks a significant return to staking services in select states after facing regulatory scrutiny in the past.
The new offering will allow users in 37 states and two territories to stake digital assets such as Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). This move restores access to staking for a broad segment of Kraken’s US users, aligning with the global availability of similar products. Kraken has stated that they plan to expand access as permitted by state regulations.
Mark Greenberg, Kraken’s global head of consumer, expressed enthusiasm about the launch of this new staking product in the US. He believes that it will have a positive impact on the development and mass adoption of cryptocurrencies in the country.
Kraken’s announcement comes nearly a year after the company settled with the Securities and Exchange Commission (SEC) over allegations of failing to register its previous staking service. As part of the settlement, Kraken paid a $30 million fine and ceased its staking services for US customers. The new staking product follows a different model where assets staked via Kraken Pro are delegated to validators that process transactions and secure blockchain networks. Rewards, minus fees, are then passed back to users.
Kraken was one of the first centralized exchanges to introduce onchain staking in 2019 and has since integrated additional staking solutions, including Ethereum restaking via EigenLayer. The company’s revamped US staking service aims to restore parity with the staking options available to its international users.
Proof-of-stake (PoS) has become a dominant consensus mechanism in the crypto industry, with stakers helping to secure networks in exchange for rewards. However, regulatory concerns have raised questions about whether staking services constitute unregistered securities offerings in the US.
Kraken’s ability to resume staking in much of the US signals a shift in how crypto firms are approaching compliance while maintaining staking as a core feature. The company emphasizes that staking involves inherent risks, including potential loss from slashing penalties, bonding periods, and asset depreciation.
Overall, Kraken’s new onchain staking product represents a significant development in the US crypto space and offers users the opportunity to participate in staking activities with a compliant and secure platform.