Crypto wrap: SEC's fine on Kraken poses wider threat to market, say experts

Following the SEC order, the crypto industry saw massive sellout, with Bitcoin falling nearly 4 per cent and Ethereum declining over 5 per cent in the last 24 hours

The Securities and Exchange Commission's (SEC) action against US-based crypto exchange Kraken is expected to have a wider impact on the industry, experts told Business Standard. On Thursday, SEC said most staking platforms fail to provide proper disclosures and imposed a $30 million fine on Kraken.

Later, Kraken announced that it would end its staking service and pay the fine.

Under staking, investors lock their crypto assets for a set period, allowing various market participants to use the underlying Blockchain technology. In return, they are offered additional crypto assets as a reward.

Following the SEC order, the crypto industry saw