Kraken and SEC Reach Settlement over Staking Services
The crypto exchange, Kraken, recently entered into a settlement agreement with the Securities and Exchanges Commission (SEC), which resulted in the discontinuation of staking services for Ethereum and similar cryptocurrencies. This news caused a decline in the value of digital assets in the market, leading to a question among users – what will happen to the staked ETH?
Unstaking of Tokens
Kraken’s settlement with the SEC requires the immediate cessation of crypto staking services to retail investors in the United States. According to the exchange’s statement, all staked tokens will be unstaked and returned to users in their respective balances, except for Ethereum.
Staked Ethereum Remains in Limbo
Unlike other staking networks, Ethereum users are not yet able to withdraw their staked ETH. Despite the agreement between Kraken and the SEC, U.S. retail investors will still be able to earn rewards on their staked ETH, but will not be able to add to their positions.
Ethereum Price Movement
The recent events had an impact on Ethereum’s value as it saw a significant drop from its position above $1,600 to around $1,500. This shows a buildup of selling pressure from investors and a shift in momentum towards the bearish side.
To prevent a further decline, it is crucial for bulls to support Ethereum at $1,500 and regain its upward trend. If the asset falls below $1,500 and reaches $1,300, it could mark the end of the recent mini-bull run for Ethereum.