Today, two Kraken subsidiaries announced a settlement with the United States Securities and Exchange Commission (SEC) regarding Kraken’s on-chain staking program. As a result of this settlement, Kraken has agreed to end its on-chain staking services for US customers.
Starting today, Kraken will automatically withdraw all assets from US clients enrolled in the on-chain staking program. These assets will no longer yield staking rewards. This applies to all staked assets except for staked ether (ETH), which will no longer be staked after the Shanghai upgrade. US customers will not be able to stake additional assets, including ETH.
Kraken will continue to offer staking services for non-US customers through a separate Kraken subsidiary.
What does this mean for existing US staking customers?
- US clients will not be able to stake new assets.
- Previously staked non-ETH assets will be automatically foiled. These assets will be returned to the client’s spot wallet and will no longer earn rewards.
- Kraken will prorate final rewards through February 9. These rewards will not be staked. Kraken will instead pay out the rewards in their unstaked form.
- All staked ETH will become unstaked after the Shanghai upgrade and will continue to earn rewards until then. There are no changes to the payout structure prior to the Shanghai upgrade, when ETH will no longer be staked.
Staking services for non-US customers will continue uninterrupted. Non-US customers can continue to wager and withdraw assets, as well as earn and automatically wager rewards, as usual.