Kraken Considers Launching its Own Bank following SEC Settlement

Kraken is reportedly considering the launch of its bank, following accusations from the U.S. Securities and Exchange Commission (SEC) that the trading platform failed to register its cryptocurrency asset staking program. According to reports, Marco Santori, Kraken's Chief Legal Officer, stated in a podcast that Kraken Bank is close to being launched.

However, Kraken has already stated on its website that it plans to launch the bank in stages in 2022, with initial services being offered to Kraken clients in the United States before being extended to other clients. As of 2023, the cryptocurrency trading platform has continued to settle a $30 million dispute with the SEC.

The SEC announced that Kraken agreed to stop offering or selling securities through its digital asset staking program. The trading platform had been offering and selling cryptocurrency staking services since 2019.

Kraken's legal officer declined to comment on the settlement with the SEC but stated that staking was a small part of Kraken's revenue. The company neither admits nor denies any of the claims made in the complaint. It added that the legal action does not affect its product mix in the United States.

The SEC-Kraken settlement represents the first regulatory campaign against staking, which is a shared service offered by both centralized and decentralized trading platforms.