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.
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Open account Try 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
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