Speaking with CNBC’s Squawk Box on Friday, SEC Chair Gary Gensler blamed Kraken for failing to register its staking-as-a-service product with the Commission, and for not providing the relevant risk disclosures. He also dismissed the common criticism that there is a lack of clear rules that govern crypto, or that there is no clear path to register such products. 

“There's a clear way to do this, and there are forms on our website,” he said. “I think it's just a talking point that the industry is using. They know how to do this. They are just choosing not to do it.”

Crypto staking is both how proof-of-stake blockchains secure their networks and validate transactions and how these networks issue new tokens. Kraken’s staking service, also provided by many other large exchanges and companies, allows the company to stake customer assets on their behalf.