The decision of the US Securities and Exchange Commission to penalize crypto exchange Kraken with a $30 million fine and shut down the exchange’s on-chain staking program would be nothing but a stress test for innovations in the crypto industry if the market reactions were to be the basis.“Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” said SEC Chair Gary Gensler. “Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.”“In case after case, we’ve seen the consequences when individuals and businesses tout and offer crypto investments outside of the protections provided by the federal securities laws: investors lack the disclosures they deserve and are harmed when they don’t receive them,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said in a press release.Hours after the SEC announcement, BTC prices went back down to the 21,000 to the US dollar territories but held steady just under the 22,000 mark after weeks of rallying close to 24,000. However, prices of two of the largest pooled staking services shot up - RPL’s price increased by 14.5% and LDO gained 13.2% within 24 hours after the announcement.<h3 id="strong-innovators-will-find-a-way-strong">Innovators will find a way</h3>“You could see two types of market feedback. One is a knee-jerk reaction to the BTC prices, which was expected, and another to the prospects of pooled stakers, which is a clear signal about the value of staking as an innovation in crypto,” said Ben Yorke of WOO Network’s Ecosystem team.“While the SEC ruling only emphasized the need to be transparent to users, Coinbase&#39;s rumor that the SEC could prohibit retail customers from participating in staking would push businesses to consider locations that don&#39;t deter progress and invest more in decentralized alternatives. These two have been our focus with our intensified presence in Europe and Asia as well as improving the DeFi offering with WOOFi and WOOFi DEX as we have mentioned in our 2022 Q4 report,” he said.“Crypto survived the loss of China as a dominant market in 2021, with most of their crypto ecosystem immigrating to neighboring hubs. The loss of retail in the US would hurt but will simply accelerate the migration of users to DeFi while builders and capital will move overseas,”  Yorke noted further.Reacting to the news, Coinbase’s Brain Armstrong said that staking is an important innovation in crypto as it allows users to participate directly in running open crypto networks. “Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints,” he said.<h3 id="strong-paxos-39-narrative-is-the-same-strong">Paxos&#39; narrative is the same</h3>Even as Kraken’s story develops, Paxos also made an announcement that it would stop issuing Binance USD (BUSD) on a threat of legal action from the SEC.“The narrative will be the same - innovators will simply avoid the US and go somewhere else to keep growing while protecting the users,” noted Yorke.On Monday following Kraken’s news, stablecoin issuer Paxos announced that it would stop issuing BUSD, a Binance-branded stablecoin issued and managed by Paxos, on a threat of legal action from the SEC.A day before that, on Sunday the Wall Street Journal reported that the SEC intends to sue Paxos over BUSD, alleging that the stablecoin is an unregistered security.“Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm,” A Binance spokesperson told CoinDesk.<h3 id="stay-tuned-for-all-of-woo-network-s-exciting-developments">Stay tuned for all of WOO Network’s exciting developments!</h3><ul><li>Twitter: <a href="https://twitter.com/WOOnetwork" rel="noopener noreferrer nofollow">https://twitter.com/WOOnetwork</a></li><li>Website: <a href="https://woo.network/" rel="noopener noreferrer nofollow">https://woo.org</a></li><li>Telegram Announcements: <a href="https://t.me/woonetworkann" rel="noopener noreferrer nofollow">https://t.me/woonetworkann</a></li><li>Medium: <a href="https://medium.com/woonetwork" rel="noopener noreferrer nofollow">https://medium.com/woonetwork</a></li></ul>The content above is neither a recommendation for investment and trading strategies nor does it constitute an offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.WOO Network will not be responsible or liable for any losses (including, without limitation, any direct or indirect damages for loss of profits) resulting or arising directly or indirectly from your participation in this campaign.The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.

The curious case of Kraken: Innovators will always find a way

Spis treści

WOO

Inne artykuły opublikowane 15 lut 2023

No More Crypto Custodians in the U.S.A? SEC to Bring New Laws!

HERO SPOTLIGHT: DOTLER

Transfer Disclosure (196,850.39 WEMIX)

Introducing Market Maker Integration on Ethereum PancakeSwap, Trade and Share $10,000 USDC in rew...

SBF to Face Court Proceedings for its Criminal Charges Before SEC and CFTC Cases

Unlocking the Mystery of UAPs with XRP Blockchain: Improving National Security

Zapisz się na bezpłatny newsletter i otrzymuj codzień aktualności ze świata kryptowalut!