Gary Gensler: The Crypto Industry Should Pay Attention to Kraken’s Case

According to the SEC chairman Gary Gensler, cryptocurrency platforms should “take note” of Kraken’s decision to close the staking program for US customers.

He has said:

“Companies like Kraken can offer investment contracts and investment schemes, but they must disclose complete, honest and truthful information. And that puts the investors who watch your program in a better position. This is our main deal. They did not comply with this basic law.”

According to him, the story with Kraken should attract the attention of market participants. At the same time, when asked by the host what coercive measures could be applied to other programs like Coinbase Earn, the head of the department replied that the “labels” – credit, income or earnings – do not matter.

He has explained:

“If someone takes their tokens and transfers to this platform, the platform controls them, and guess what happens if they go bankrupt? You are standing in line at the bankruptcy court.”