US SEC Crypto Staking Crackdown Benefits Decentralized Services, Here’s How

Decentralized finance protocols such as Lido, Rocket Pool, and StakeWise may benefit from the U.S. Securities and Exchange Commission (SEC) crackdown against crypto staking services, reported Bloomberg on February 10.
However, the decentralized staking protocol will benefit only if they avoid a similar regulatory action by the SEC or other regulators in the future.
How Crypto Staking Crackdown To Help Decentralized Services
On Thursday, U.S.-based crypto exchange Kraken settled SEC allegations of the unregistered offer and sale of securities through its staking-as-a-service program. The crypto exchange paid $30 million and agreed to discontinue the service in the US.
Many in the DeFi community believe the autonomous aspect led to decentralized finance (DeFi) apps falling outside the guidelines of regulators as “no individual benefits directly.” People use these DeFi apps to trade, lend and borrow without intermediaries through the use of automated protocols.
Henry Elder, head of decentralized finance at Wave Financial, said:
“This is a huge gift to decentralized staking providers like Lido, Rocket Pool, and StakeWise. Their competitive advantage is an innate resistance to regulatory action — something that mattered little in the absence of such action.”
Staking involves earning rewards and yields by locking up crypto tokens on the protocol that help order transactions on various blockchains such as Ethereum. Crypto exchanges such as Coinbase, Kraken, and Binance have introduced staking services to increase their revenues.
Austin Campbell, an adjunct professor at Columbia Business School, asserts crypto staking crackdown is definitely good news for on-chain direct staking and decentralized platforms in the short term. However, it’s too early for DeFi to call it a win. Regulators are more likely to intervene and order platforms to register with them, similar to what’s happening with crypto exchanges.
Also Read: “Operation Choke Point 2.0”: Is US Planning Crackdown Against Crypto Market?
Lido DAO (LDO) and Rocket Pool (RPL) Price Jump
Lido DAO (LDO) and Rocket Pool (RPL) prices have skyrocketed by 25% and 30%, respectively, in the last two days.
RPL price is currently $54.48, up 17% in the last 24 hours. Meanwhile, the LDO price is trading at $2.68, down just 2% in the last 24 hours.
Also Read: SEC Commissioner Hester Peirce Denounces Agency’s Crackdown on Kraken’s Staking Service
- Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”
- ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?
- Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?