Post by rollsgabi on Mar 3, 2023 22:16:59 GMT -5
U.S. crackdown leads to increased crypto outflows
The primary downside catalyst of the day appears to be investors’ concerns over enforcement action against the crypto industry. The recent SEC crackdown on Paxos and Binance and enforcement action centralized exchanges offering staking-as a service, was followed by $32 million in digital asset outflows on Feb. 20.
The SEC started the recent string of enforcement actions by going after Kraken’s earn program on Feb. 9. In the $30 million settlement announcement, the SEC said it had charged Kraken with “failing to register the offer and sale of their crypto-asset staking-as-a-service program,” which the commission claims qualified as a sale of securities. In addition to the monetary fine, Kraken agreed to cease earn program operations.
The primary downside catalyst of the day appears to be investors’ concerns over enforcement action against the crypto industry. The recent SEC crackdown on Paxos and Binance and enforcement action centralized exchanges offering staking-as a service, was followed by $32 million in digital asset outflows on Feb. 20.
The SEC started the recent string of enforcement actions by going after Kraken’s earn program on Feb. 9. In the $30 million settlement announcement, the SEC said it had charged Kraken with “failing to register the offer and sale of their crypto-asset staking-as-a-service program,” which the commission claims qualified as a sale of securities. In addition to the monetary fine, Kraken agreed to cease earn program operations.