Crypto Crash Imminent?: Kraken Settles With SEC, Binance Halts US Dollar Transfers

Kraken SEC Settlement News: The crypto market is in the danger of facing an imminent crash due to back to back shock news effect. According to an official announcement, the exchange entered into a settlement with the U.S. Securities and Exchange Commission (SEC) by agreeing to close down its crypto staking service and $30 million in penalties. It appears that things moved fast between both the parties after it was earlier stated that a settlement could be reached in the ‘coming days’. Kraken was facing an SEC probe into whether it offered unregistered securities.

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Crypto Market Reacts To Kraken SEC News

Meanwhile, the cryptocurrency market is dumping heavily in reaction to the Kraken SEC settlement news. In a very short span of time, Bitcoin (BTC) lost around $600 value down to the $22,000 level now. As of writing, BTC price stands at $22,025, down 3.75% in the last 24 hours. Going by the current market sentiment, BTC is more likely to dip further.

On the other side, major crypto exchange Binance said it was temporarily halting US dollar deposits and withdrawals. This led to speculation about the exchange’s challenged with the banking partners in the United States. The company said in a statement it was working to restart service as soon as possible.

Also Read: LocalBitcoins To Close Service, Crypto Community Distraught

Crypto Staking – SEC’s Target?

Much has been talked about around crypto staking as a service after Coinbase CEO Brian Armstrong stating that the SEC was about to place a ban staking. He said rumors were around that the SEC was planning to ban crypto staking for retail investors. The latest news of Kraken offering to close down its staking service only reiterates the SEC’s intentions.

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Will the impact of SEC’s actions on the crypto market prolong for next few weeks? Or there could be a shift of capital from altcoins to Bitcoin (BTC)?