The Securities and Exchange Commission (SEC) has charged Payward Ventures, Inc. and Payward Trading Ltd., the companies that operate the cryptocurrency exchange Kraken, with failing to register as a securities exchange and offering unregistered securities. The SEC alleges that Kraken has offered and sold unregistered securities in the form of a staking service that allows customers to earn rewards on their cryptocurrency holdings. The SEC also alleges that Kraken has commingled customer funds with its own funds and has failed to maintain adequate records. If the SEC's allegations are proven, Kraken could face significant fines and penalties.