# SEC’s Move On Kraken’s Staking Program
The U.S Securities and Exchange Commission (SEC) has taken action against Kraken’s staking program last week. It is important to note that this shouldn’t be seen as an indictment of staking in general.
## What Is Staking?
Staking is the process of holding or depositing cryptocurrency or tokens into a digital wallet for a certain period of time. In return for this commitment, users are rewarded with staking rewards. This is a form of passive income, as users do not have to actively trade on the markets to earn rewards. As such, staking has become increasingly popular among cryptocurrency traders and investors.
## What Is Kraken?
Kraken is a popular cryptocurrency exchange platform. It was founded in 2011 and has since become one of the largest exchanges in the world. It is one of the first exchanges to offer staking services to its users.
## What Did The SEC Do?
The SEC took action against Kraken’s staking program. Specifically, the SEC alleged that Kraken had failed to register its staking activities as securities, as required by the SEC. As a result, the SEC ordered Kraken to cease and desist from offering securities without registering them.
## What Does This Mean For Kraken?
Kraken has since announced that it will be ceasing its staking services until it can ensure full compliance with the SEC’s regulations. While this does mean that users will no longer be able to take advantage of the staking services offered by Kraken, it is important to note that this action is not an indictment of staking in general.
## What Does This Mean For Staking?
The SEC’s move on Kraken’s staking program should not be seen as a signal that staking is illegal or improper. Rather, it should be seen as a signal that the SEC is looking closely at the cryptocurrency industry and is taking steps to ensure that all participants are following the proper regulations. As such, it is important for all cryptocurrency exchanges and users to remain compliant with the SEC’s regulations in order to avoid any potential legal ramifications.
