US SEC Commissioner Hester Pierce has openly attacked her own organization for shutting down Kraken’s crypto staking program in the United States.
Peirce accused the SEC of being “lazy and paternalistic,” arguing that it should have begun a public effort to design a suitable registration process that delivers vital information to investors.
Hester Pierce says SEC Kraken decision ‘not efficient or fair’
In a statement titled “Kraken Down,” the commissioner chastised her organization, claiming that regulation through enforcement “is not an efficient or fair way of regulating” an emerging industry.
“Today, the SEC shut down Kraken’s staking program and counted it as a win for investors,” Pierce wrote. “I disagree and therefore dissent.”
Peirce’s statement also slammed the regulator for shutting down a “program that has served people well.”
Coinbase CEO agrees with SEC commissioner
Due to the lack of a clear registration procedure, Coinbase CEO and co-founder Brian Armstrong agreed with Peirce that asking enterprises to register their staking services is a “disingenuous offer.”
Coinbase is currently the subject of an SEC investigation similar to the one that resulted in the Kraken resolution, which it reported in a SEC filing was similarly related to its staking services.
Armstrong indicated earlier this week that he had heard reports that the SEC would like to eliminate crypto staking in the US for retail customers, and that this would be a “terrible path for the US” since it would force crypto businesses even further offshore.