Did you know that Ethereum (ETH) will temporarily be an exception to this rule? Ethereum stacking on the platform will be discontinued after the update of the altcoin network called Shanghai, which is expected in March. The delay in the cancellation of stacking with ETH coins is due to the fact that the altcoin cannot technically be withdrawn from the program before the upcoming update.
Kraken accounts for 7.4% of all Ethereum coins in stacking (1.23 million ETH - $1.9 billion), according to analytics platform Dune.
Generally speaking, the discontinuation of the service for U.S. customers is said to stem from an SEC investigation into Payward Ventures and Payward Trading (operators of the Kraken exchange). The regulator accused them of not properly registering their stacking program as a service, under which investors hand over crypto assets to Kraken for placement in order to earn returns of up to 21% per annum.
And on that to settle the SEC charges, the companies agreed to immediately stop stacking for U.S. users and pay a $30 million fine.
Perhaps that's the way it should be...