SEC Fines Kraken $30 Million for Staking? Coinbase (USDC) and Bina…

One of the biggest news making the rounds in the crypto market right now is the $30 million fine levied by the US SEC on Kraken for their staking program. This has kickstarted a slew of activities in the industry. Many analysts are pointing out that the move indicates that the SEC is trying to eliminate staking for retail crypto investors in the U.S. Are Coinbase (USDC) and Binance US (BUSD) next in line? How will the TMS network (TMSN) weather the new regulatory environment? Let’s find out.

Kraken, SEC Fines Kraken $30 Million for Staking? Coinbase (USDC) and Binance US (BUSD) Next? What Does This Mean for TMS Network (TMSN)?

Is Kraken Being Fined for Staking?

In the crypto-verse, staking is an alternative to mining. Investors place their crypto tokens in an escrow, validate the next data block and get native token rewards. The Kraken staking services enabled investors to transfer their assets to the Kraken and stake them in exchange for more than 20% returns.

Kraken will pay $30 million in fines to the Securities & Exchange Commission and shut down its staking service. The fine was levied because Kraken allegedly violated rules by not registering its staking-as-a-service program with the Commission.

In a statement, Gary Gensler, the Chairman of the SEC, said, “Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.”

The move by SEC is followed by panic in the crypto market as to who the SEC will target next. The two biggest crypto exchanges in the U.S., Coinbase (USDC) and Binance US (BUSD), are unsurprisingly anxious about their futures.

Are Coinbase (USDC) and Binance US (BUSD) Next in Line?

The Kraken settlement is the first staking crackdown by the SEC. Interestingly, staking is a service offered by all crypto exchanges – both centralized and decentralized. These include the major US exchanges like Binance US (BUSD) and Coinbase (USDC).

According to experts, Coinbase (USDC) and Binance US (BUSD), among other exchanges, should expect Wells Notices sometime soon. Regulators issue them to inform companies that their investigation found irregularities in their operations.

Binance US’s (BUSD) stablecoin partner, Paxos, is already under investigation by The New York Department of Financial Services (NYDFS). Allegedly, Paxos has also been asked to withdraw an application it has filed for a full banking license from the U.S. Office of the Comptroller of the Currency (OCC).

Coinbase is the largest crypto exchange in the U.S. and is rumored to be the next potential target. The CEO of Coinbase, Brian Armstrong, was also one of the first to inform about the crackdown on Kraken and called it “a terrible path for the U.S.” Signals are strong that Coinbase is on the radar of the US SEC. Shares of Coinbase have already plunged around 14% since the news broke, and it shows that the general market is also expecting an SEC action.

Binance US is already facing heat because of its founder’s role in the collapse of FTX. Binance US’s founder’s tweets played an instrumental role in triggering the sell-offs that eventually led to FTX’s crash, according to Sam Bankman-Fried, FTX’s founder and CEO. When it’s already embroiled in such a controversy, an SEC slap on the wrist can be a harsher punishment than Kraken felt.

TMS Network Holds Strong

TMS Network (TMSN) has been growing from strength to strength. It offers its users an opportunity to trade in the crypto markets, stocks, and Forex. In this season of strict regulatory action, TMS Network (TMSN) is safe.

Since TMS network (TMSN) also offers equity and Forex trading, it already complies with all the SEC regulations. Unlike other crypto-only platforms, it is not functioning in a grey area. It has all the necessary compliances in place. This shield ensures that TMS Network (TMSN) will not violate any SEC regulations. Such a strong foundation has secured a bright future for TMS Network.

Moreover, TMS Network (TMSN) does not currently offer staking-as-a-service. It might in the coming months, but that will depend on how the regulations around staking change. So, TMS Network (TMSN) users have nothing to be worried about, even when the whole market is battling SEC panic.