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SEC enforcement against Kraken opens doors for Lido, Frax and Rocket Pool

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Kraken has put an end to staking as a service, and Coinbase could eventually be forced to follow suit. Will this create opportunities for LDO, FXS and RPL?

The United States Securities and Exchange Commission is ramping up pressure on the crypto sector. On Feb. 9, the SEC reached a $30 million settlement with Kraken over the centralized staking program it offered to its users.

The news of the crackdown sent the price of Bitcoin (BTC) to a three-week low as investors became fearful of the regulatory enforcement. Ether’s (ETH) price also corrected on the news, cementing the token’s worst-performing day of 2023.

While the overall crypto market was down after the SEC announcement, bright spots arose, with decentralized liquid staking tokens LDO, RPL and FXS quickly rebounding from their sharp corrections.

According to Crypto Twitter analyst Korpi, Kraken and Coinbase represent 33% of all staked Ether, and if U.S.-based centralized exchanges are “forced” to cease offering staking-as-a-service programs, liquid staking derivatives providers could absorb that market share.

Based on recent tweets, crypto traders are well aware of this potential outcome, and this could be part of the reason for the short-term rebound seen in Lido’s LDO, Rocket Pool’s RPL and Frax’s FXS. Let’s take a look at some fundamental data points that might back their bullish thesis.

Centralized staking could be banned for U.S.-based investors

The aftermath of Kraken’s capitulation to the SEC could spill over to other centralized exchanges that offer staking as a service. While not all SEC commissioners agreed with the crackdown on Kraken, the settlement puts other companies in the hot seat, such as Coinbase and its Earn program.

On Feb. 8, Coinbase CEO Brian Armstrong described how disastrous he believes the SEC’s crackdown on staking would be for U.S. investors.

1/ We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that's not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.

— Brian Armstrong (@brian_armstrong) February 8, 2023

The SEC’s decision to regulate cryptocurrencies through enforcement actions rather than clear regulations caught the ire of the crypto community due to its ”anti-crypto” actions.

Decentralized staking as a service could solve securities issues

If a wider crackdown on centralized staking services ensues, that market share of stakers could be absorbed by decentralized providers like Lido, Rocket Pool and others. In the aftermath of the SEC’s decision, Rocket Pool briefly reached $1 billion in total value locked (TVL).

Lido, the largest liquid staking provider, has over $8.5 billion in TVL. And while the platform did not see an initial boost in usage after the SEC’s decision, large inflows may begin as users seek new places to stake their Ether.

Lido daily active users and TVL. Source: Token Terminal

The crypto market may be down since the SEC decision, but RPL and LDO prices are up. Within 24 hours of the Feb. 9 SEC announcement, RPL’s price increased by 14.5% and LDO gained 13.2% before correcting to $2.39.

The increase in prices seems to be from large whales accumulating major amounts of tokens.

The #SEC announced that #Kraken will end US crypto-staking service and pay $30M to settle.

Which may benefit liquid staking derivatives tokens like $RPL and $LDO.

We noticed that some addresses were accumulating $RPL and $LDO.

1.
Share them with you.https://t.co/lsQDm7SfHc

— Lookonchain (@lookonchain) February 10, 2023

The growth shows that even as the market is down, investors are betting on increased platform usage, which will translate to more fees for the organization.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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