Cryptocurrencies are losing today because yesterday the U.S. Securities and Exchange Commission (SEC) announced the closure of the staking program of the second largest cryptocurrency exchange in the U.S., Kraken. Staking is a service that allows you to earn passive income from your cryptocurrencies, 'locked' in the blockchain where they help process transactions and keep the network liquid. Bitcoin is slipping below $22,000, Ethereum costs around $1550.
- SEC chief Gary Gensler said the SEC's decision was dictated by concern for the safety of investors, who in the past often lost their funds by giving them to centralized cryptocurrency exchanges to manage;
- Kraken exchange will pay a $30 million fine for failing to register its staking program in accordance with SEC law for securities. Staking in the US is likely to be impossible for retail investors due to which Coinbase (COIN.US) shares are also losing today, some analysts indicated that the exchange will derive additional revenue from the launch of a public Ethereum staking program;
- At the same time, an investigation will be launched into Paxos and Circle, the entities behind stablecoins i.e. cryptocurrencies that mimic the US dollar BinanceUSD BUSD) and CircleUSD (USDC). Both declared full 1:1 coverage with the dollar, but regulators are likely to have spotted irregularities because they will send both companies a so-called 'wells' notice - sent after investigations are completed to offending entities.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appBitcoin, H4 interval. The major cryptocurrency is slipping around $21,800 and has so far defended itself in the resistance zone set by the SMA200 (red line), which runs at $21,600. However, another downward impulse may be triggered with further news of decisions by US regulators. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.