Timothy Massad shared his opinion on the US SEC $30 million fine against Kraken’s crypto staking offerings.
Two weeks ago, the United States Securities and Exchange Commission (SEC) announced a $30 million fine on the Kraken exchange over crypto staking offerings and also ordered it to stop providing crypto staking services to US citizens. Kraken also settled the case blindly. Kraken co-founder Jesse Powell disclosed that the company was not in a position where it can fight against the SEC agency in court.
Timothy Massad, former Commodity Futures Trading Commission (CFTC) chairman, recently appeared in an interview with Forkast media and shared his opinion on the whole matter.
“The Kraken case, just given its terms, was very much solicitation of an investment and falls within the definition of an investment contract, so the facts make it clear why the SEC took its action”
According to CFTC’s former commissioner crypto staking services by the Kraken exchange were different from other exchanges and it may be a possible reason why the SEC agency took the action against Kraken only but at the same time suggested people wait for the SEC agency if they will provide more information to make sure which types of crypto staking offerings are allowed & which are not.
“We’ll just have to wait and see as to whether the SEC sheds more light on what type of staking is permissible and what’s not,” Massad said.
Earlier this, CFTC commissioner Hester Peirce shared her opinion on this matter and said that SEC enforcement action on the Kraken’s crypto staking offerings was paternalistic and lazy because SEC failed to talk about other crypto industry participants on this matter before legal action.
Kraken co-founder Jesse also many times shared his disappointment on this matter and indirectly hinted that it was a very big mistake by the Kraken exchange that company blindly settled the case.