The story was broken by CoinDesk: https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/ ht

The story was broken by CoinDesk: https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/ https://www.coindesk.com/policy/2023/02/09/us-securities-and... Kraken is paying a $30M fine to the SEC because this “staking” is an unregistered security. From the initial CoinDesk story: “SEC Chair Gary Gensler has previously said he believes staking through intermediaries – like Kraken – may meet the requirements of the Howey Test, a decades-old U.S. Supreme Court case commonly used as one measure of whether something can be defined as a security under U.S. laws. Staking looks similar to lending, Gensler said at the time. The SEC has brought and settled charges with lending companies before, such as now-bankrupt lender BlockFi.”