• On Feb. 9, the SEC took aim at Kraken and its staking-as-a-service products for offering unregistered securities.
• As a result, Kraken suspended staking-as-a-service and crypto markets have slumped.
• Analyst Alex Krüger suggested that a ban on staking would push it off-chain or overseas and decentralize Ethereum even further.
SEC Stakes Crackdown
The U.S. Securities and Exchange Commission (SEC) recently enforces its stance against staking as a service offered by Krakens which has caused crypto markets to slump.
Analyst Alex Krüger put a positive spin on the situation despite the crackdown from the SEC by suggesting that a ban on staking could push it off chain or overseas which will consequently decentralize Ethereum further.
Krüger went on to predict that the same narrative of decentralization happened after China banned Bitcoin when miner exodus furthered decentralized the network even more.
The regulation claims that Kraken is offering unregistered securities through its services and as such it was suspended in order to comply with the law of SEC.
Krüger concluded by saying that decentralized ETH is better ETH since they are no longer under the control of US regulators