The price of ether fell on Friday, as investors weighed the future of crypto staking in light of Kraken exchange’s recent settlement with the U.S. Securities and Exchange Commission (SEC). The SEC has been cracking down on unregistered securities offerings, and this latest settlement appears to be a warning shot for other exchanges that may be engaging in similar activities.
Crypto investors are now concerned about how these regulatory actions will affect their ability to stake tokens or coins through an exchange like Kraken. Many believe that if staking is restricted or made more difficult due to regulation, it could hurt the value of ether and other cryptocurrencies.
In addition, there are also concerns about how much control exchanges will have over investor funds when they offer staking services—and whether those funds would remain safe from potential hacks or scams associated with crypto-assets trading platforms. As such, many investors are taking a wait-and-see approach until further clarity emerges regarding regulations related to cryptocurrency staking activities before making any decisions about investing in digital assets like ether going forward into 2021.
Read more at CNBC
