Ethereum Staking Kraken: The closure of crypto exchange Kraken’s staking service means that the responsibility for 1.23 million ETH staked assets belongs to users. According to the exchange, unstaking will be allowed only after the Shanghai upgrade. After the settlement, which was prompted by fears of staking ban, the SEC’s crackdown against Kraken had massive repercussions on the crypto market. Because the SEC’s resistance against crypto staking directly impacts these tokens, the impact was even more severe in proof-of-stake based cryptocurrencies.
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Kraken was charged by the SEC with failing to register their offer and sale of crypto staking programs. The exchange was charged with failing to register the offer and sale of their crypto staking program. It also offered to pay $30 million in penalties. Fears of more crackdowns on other crypto exchanges led to a sell-off in the crypto market. The SEC is disallowing the staking program because the exchanges lack proper disclosures and safeguards that are required by securities laws.
As fears of a further price crash grow, there is a strong undercurrent sentiment to buy the dip. Nevertheless, the bullish scenario of rising crypto prices as seen in January 2023 could mean that there will be resistance to regulatory pressure in the coming days. Ethereum (ETH) traders hoped for significant upside in the upcoming Shanghai upgrade scheduled to take place March 2023.

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On the other side, further crackdown on crypto exchanges could result in traders preferring to invest in Bitcoin, which has the popular distinction of being regulation-resistant. Many users may be concerned by Kraken’s withdrawal from the staking space, which has a 7.5% share of all staked ETH.
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Also read: Price to Fall Deeper or Preparing for a Rebound to $25K?

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