SEC charged Kraken for the unregistered offer and sale of securities through its Staking-as-a-Service program (SaaS). Kraken has announced that it has discontinued its SaaS service. Gary Gensler in a short video published by the SEC explained that they don’t object to staking mechanisms, but staking providers. This only has a positive effect on the blockchain industry, as the SEC is essentially encouraging self-custody and making it impossible for centralized exchanges to use staking for their business. Let’s not rejoice prematurely, the SEC is unpredictable and may come out with some other announcement. Whatever the next announcement, trust that no authority with limited jurisdiction can stop a decentralized network like Cardano.
- The SEC requires staking providers to provide users with proper disclosures and safeguards required by US laws.
- The SEC has no objection to PoS networks and the staking mechanism.
- People using their own wallets for staking are not the target of the SEC.
- Cardano has liquid staking and there is no required minimum of coins so stakers don’t need SaaS services.
- The momentum that drives stakers out of centralized exchanges is actually a small win.
- ADA coins can be easily hidden and easily moved to the other side of the planet.
Read the article: https://cexplorer.io/article/sec-can-t-stop-cardano