Crypto exchange Kraken has reportedly agreed to close its operations related to staking crypto to settle the charges it has with the US-based SEC.
The SEC, according to a source familiar with the matter, had a closed-door vote on the settlement during a secret commissioner meeting. The source believes that an official announcement should come soon.
When reached by CoinDesk, Kraken refused to comment on the matter. Also, the SEC refused to comment after CoinDesk originally published the news. However, soon after the news came out, the SEC officially confirmed that Kraken would discontinue its US-based crypto staking services for its customers.
Crypto staking encompasses several Kraken services, such as a crypto lending service that reportedly provides up to 24 per cent yield. This service is expected to be discontinued as well under the terms of the SEC settlement.
Customers were offered a 20 per cent APY by the Kraken crypto staking product, as the company promised to provide users with biweekly staking rewards, as its website states. According to Bloomberg, before this announcement, Kraken almost reached a settlement with the SEC in the matter related to providing unregistered securities.
