Despite coming under scrutiny from the US Securities and Exchange Commission, American multinational digital currency trading site Kraken has experienced an increase in its trading volume. Kraken's trading volume was $762.67 million, up 20.01% over the previous 24 hours, according to statistics from CoinMarketCap.
Kraken was sued by the SEC for providing Staking as a Service to US consumers without properly registering it. Gary Gensler, the commission's chairman, said:
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.
Such enforcement efforts should ideally cause panic for the cryptocurrency industry and for digital currencies, which results in sharp price drops. Regarding Kraken's trading volume, a similar negative posture was anticipated, but the contrary is what is being seen. After Binance and Coinbase Global Inc., Kraken is now recognized as the third-largest digital currency trading platform.
Brian Armstrong, the CEO of Coinbase, claimed to have heard about the attack. In response to current developments, Armstrong tweeted that the exchange would need to take precautions to safeguard itself from governmental overreach.
Many industry participants, including its own Commissioner Hester Peirce, sometimes known as Crypto Mom, did not support the SEC's attack.
Kraken has decided to discontinue the staking program and pay a $30 million fine in an effort to avoid getting into a protracted legal battle with a regulator like Ripple Labs Inc.