I think the point is to establish some precedent that what Kraken was offering actually was an unregulated security, something that might not have been completely clear before this. I doubt that the Fed is deeply concerned about Kraken beyond that.
I think that's the point? The SEC doesn't want an issue where Kraken loses all the funds because they didn't actually stake anything at all and instead were investing in tulip futures.
I hope it was sarcastic. At this point, are there any exchanges that aren't doing untoward things with their customer's assets? We basically have exchanges that failed doing this and other exchanges with ambiguous descriptions of what they have done that haven't failed yet.
I doubt it will push a significant chunk of these users to self-custody. Self-custody is significantly more complicated than leaving assets on an exchange—which is why most people don't do self-custody. I'm sure this will drive some to self-custody. But I don't imagine it'll be a very large percentage.
Is it tho? A MetaMask wallet staking directly with the protocols/ yield aggregators is easier than creating a kraken account and doing KYC verification.
self custody vs. centralized exchange data would be relevant here. Instead of just saying “people don’t do it”. Because people do… and I would venture to say more people do it than keep their coins on a centralized exchange.
That may indeed be "easier", but self-custody requires a high level of confidence in your own ability to set things up properly and securely. And equally high confidence that your machine and wallet won't be compromised. I'd also say that getting to that point is difficult, unless someone is willing to play around with a test-net and not learning with their real balance.
There's definitely an appeal when it comes to having an exchange manage this all for you, even when they take a fee for doing so.
This may come off as… impractical… but I don’t understand why.
The best way to obtain coins without going through KYC is by using the protocols. The most cost effective is running a filecoin node but there are thousands of ways of getting coins by participating in the ecosystem.
Right. I self custody most of my stuff, but I do stake a few coins with Kraken because the amount is relatively small and it's easier. Taking away this service is annoying.