Major Ups And Downs Recorded In Crypto Last Week


  • Crypto market faced losses this week due to U.S. regulators’ heightened scrutiny of the industry.
  • SEC ordered Kraken exchange to shut down its staking service and imposed a $30 million fine.
  • Gemini exchange reached a deal to reimburse its Earn users, while Jameson Lopp, CTO of crypto wallet Casa, expressed concern about the rise of NFT-style assets on Bitcoin.

This Week in Crypto: Regulatory Scrutiny and Community Support

In the crypto world this week, regulatory scrutiny was at the forefront of industry developments. The Security and Exchange Commission (SEC) took action against popular exchange Kraken, ordering it to shut down its staking service and imposing a $30 million fine. This enforcement action is expected to have far-reaching implications, as the SEC Chair Gary Gensler emphasized the need for “full, fair and truthful disclosure” in offerings of staking rewards.

With the crackdown on Kraken by the SEC, the crypto industry has seen a flurry of reactions. On Thursday, the regulator announced that it had fined the popular exchange for the aforementioned $30 million and ordered it to shut down its staking service. In response, Kraken’s founder and former CEO Jesse Powell shared a video on Twitter in which SEC Chair Gary Gensler stated that those offering staking rewards must have “full, fair, and truthful disclosure” in order to be deemed compliant. However, Powell appeared to be skeptical of the statement.

Andreessen Horowitz’s General Counsel, Miles Jennings, shared his thoughts on the case via Twitter. “Fortunately, we don’t believe this settlement will have any bearing on exchanges that have structured their programs so as not to implicate securities laws,” he said. Jennings then went on to criticize SEC Chair Gensler’s regulation-by-enforcement strategy.

U.S. Representative for Michigan’s fourth congressional district, Bill Huizenga, also had strong words for Gensler. Meanwhile, Coinbase’s CEO Brian Armstrong defended Ethereum staking, stating that it does not make Ethereum a security and is therefore outside of the SEC’s jurisdiction.

In other news, this week saw a resolution in the ongoing feud between the Gemini exchange and its creditors Genesis. Gemini co-founder Cameron Winklevoss announced that a plan to reimburse Earn users, who Genesis allegedly owes $900 million, had been reached.

Additionally, a multi-tweet thread from Zhu Su, the co-founder of bankrupt crypto hedge fund Three Arrows Capital, revealed his next project to be a centralized exchange with fully decentralized custody. On the other hand, Jameson Lopp, co-founder and CTO of crypto wallet Casa, expressed negative views on the rise of NFT-style assets on Bitcoin.

Finally, the crypto community demonstrated its philanthropic spirit by raising millions for earthquake victims in Turkey and Syria. With all these developments in the industry, the crypto world continues to be an ever-evolving and dynamic space.


Overall, the crypto industry continues to evolve and face challenges, but remains resilient in the face of regulatory scrutiny and community support.

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