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Kraken crypto exchange to shut down its staking service.
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Agreed to pay $30 million in penalties to settle SEC charges.
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SEC's first crackdown on staking services.
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Staking offered at centralized and decentralized crypto exchanges.
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Most major exchanges in the US including Coinbase and Binance US offer staking.
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Staking providers should provide proper disclosures such as protection of staked assets.
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Staking providers should register their services with the SEC.
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SEC Chair Gary Gensler stated in a video message that companies offering returns through staking should offer federal securities law protections.
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Gensler added that most staking providers fail to provide customers proper disclosures.
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The settlement could cause headaches for platforms with similar offerings.