Overview:
- On February 9, 2023, the SEC announced charges against Kraken for failing “to register the offer and sale of their crypto asset staking-as-a-service program.” The complaint alleged that through the program, Kraken offered and sold investment contracts without registering such offers or sales with the SEC in violation of the Act.
- On February 29, 2024, DEF filed an amicus brief in support of Kraken’s motion to dismiss, arguing that applying traditional securities regulations to decentralized staking services is inappropriate and stifles innovation—and mischaracterizes the nature of decentralized protocols.
Status: Settled