Kraken will end on-chain staking services for US clients.

Today, two Kraken subsidiaries announced an agreement with the US Securities and Exchange Commission (SEC) regarding Kraken’s chain participation program. Due to this settlement, Kraken has agreed to end its on-chain staking services for US clients.

Starting today, Kraken will automatically remove all assets of US clients enrolled in the chain staking program. These assets will no longer earn staking rewards. This applies to all staked assets except staked ether (ETH), which will be unstaked after the Shanghai update. US customers will not be able to stake any additional assets, including ETH.

Kraken will continue to offer staking services for clients outside of the US through a separate Kraken subsidiary.

What does this mean for existing participation customers in the US?

US clients will not be able to stake new assets.
Previously staked non-ETH assets will be automatically withdrawn. These assets will be returned to the client’s cash wallet and will no longer earn rewards.
Kraken will prorate final rewards until February 9. These rewards will not be wagered. Instead, Kraken will pay out the rewards in their unstaked form.
All staked ETH will be unstaked after the Shanghai update and will continue to earn rewards until then. There are no changes to the payout structure until after the Shanghai update, when ETH will no longer be staked.

Participation services for customers outside of the US will continue without interruption. Non-US customers can continue to wager and remove assets, as well as earn and wager rewards automatically, as usual.

For more information, check out our update Terms of Service or contact Kraken support.