Main navigation

Kraken Trading Volume up 20% Despite SEC Crackdown: Here's What's Happening

Fri, 02/10/2023 - 08:34
article image
Godfrey Benjamin
Kraken exchange trading volume stays up amid SEC crackdown
Kraken Trading Volume up 20% Despite SEC Crackdown: Here's What's Happening
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

American multinational digital currency trading platform Kraken has seen a jump in its trading volume despite having fallen into the crosshairs with the United States Securities and Exchange Commission (SEC). According to data from CoinMarketCap, Kraken's trading volume was pegged at $762.67 million, up by 20.01% over the past 24 hours.

The SEC brought on a lawsuit against Kraken for offering Staking as a Service to U.S. customers without duly registering it as such. According to chairman of the commission Gary Gensler:

Today's action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.

Ideally, such enforcement actions typically create panic for the crypto ecosystem and for digital currencies, and prices tend to fall drastically. A similar bearish posture was expected in terms of Kraken's trading volume, but the opposite is what is being observed. Kraken is now ranked as the 3rd largest digital currency trading platform after Binance and Coinbase Global Inc.

Kraken Exchange
Image Source: CoinMarketCap

The observed growth in trading volume is best described as the community's way of showing solidarity with the digital currency exchange in defiance of the SEC.

Dogecoin Killer Shiba Inu Starts Trading on Kraken

Desperate times and desperate measures

The move by the SEC to crack down on the crypto industry was first hinted at yesterday when, as reported by U.Today, Coinbase CEO Brian Armstrong said he heard the rumor of the onslaught. Speaking about events that have happened thus far, Armstrong took to Twitter to share that the exchange would have to take steps to protect itself from government overreach.

The onslaught of the SEC was not approved by many industry stakeholders, including its own Commissioner Hester Peirce, popularly known as Crypto Mom.

In a bid not to enter a long legal war with a regulator like Ripple Labs Inc, Kraken has agreed to end the staking program and also pay a $30 million fine.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.