Kraken is bringing back crypto staking to the United States with a new product available in 37 states and two territories. Starting January 30th, eligible users can stake select cryptocurrencies through Kraken Pro.

This involves bonded staking, where assets are locked to a network for a set period. Kraken delegates these assets to validators, who verify transactions and produce blocks.

Rewards are then passed back to users after fees. The service will support 17 assets, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). More states may gain access as regulations allow.

Crypto Staking Returns

The latest relaunch by Kraken comes amidst shifting US regulatory attitudes toward crypto under President Donald Trump, as market players expect eased restrictions from the previous administration. In a statement, Mark Greenberg, Kraken Global Head of Consumer said that the resumption of staking in the country will play a significant role in the development and mass adoption of digital assets.

The exec went on to add,

“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire US crypto space. We are excited to bring back a brand new product enabling US clients to resume staking with Kraken and play a significant role in bolstering the underlying security of blockchain networks.”

Kraken shut down its staking service in February 2023 and paid $30 million to settle the Securities and Exchange Commission’s (SEC) charges over unregistered securities without admitting or denying any wrongdoing. During this period, Kraken continued to maintain its staking services for non-US users via a subsidiary.

White House Crypto Pivot

Trump’s return to the presidency signals a shift away from the harsh crypto policies of the last administration, which is expected to prove a more favorable environment for companies like Kraken to resume services. For instance, his new executive order on crypto, “Strengthening American Leadership in Digital Financial Technologies,” aims to dismantle the previous administration’s restrictive policies.

The order creates a President’s Working Group on Digital Asset Markets, chaired by AI and crypto advisor David Sacks, alongside key financial regulators. Agencies must review all prior crypto policies within 30 days and propose regulatory changes within 60 days. The group has 180 days to deliver a report on digital asset regulations, including stablecoins, and to evaluate a government-held crypto stockpile sourced from seized assets.

The order also bans federal agencies from creating or promoting a central bank digital currency (CBDC). Among other things, Trump has also followed through on previous pro-crypto promises, including pardoning Silk Road founder Ross Ulbricht.

It was another eventful week in the cryptocurrency space and it all began on Monday morning as a Chinese AI company splashed the waters. DeepSeek arrived at the scene with a bang, indicating that it can do everything ChatGPT does but is faster and cheaper, which put into question the need for highly powerful chips from giants like Nvidia.

Aside from the market-wide crash in stocks, including NVDA’s double-digit dump, the news sent shockwaves across crypto as well. BTC stood around $105,000 ahead of the Monday morning Asian trading session but slumped in hours by several grand to a multi-week low of under $98,000.

The altcoins followed suit, but this otherwise violent correction didn’t last long. By Tuesday morning, the asset had reclaimed the coveted $100,000 mark despite another brief slip below it. The markets calmed for the next few days or so in anticipation of the first FOMC meeting of the year and the first under Trump.

Once that took place and it became known that the US central bank will not change the key interest rates, BTC headed south immediately by $1,500. However, it bounced off on Thursday and spiked to $106,500 where it faced another reaction. After another correction to $104,000 earlier today, bitcoin’s price movements have calmed, and the asset stands at around $105,000 as of press time.

The weekly charts are predominantly in the red, with SOL emerging as the poorest performer within this timeframe. It’s down by 11% after last week’s all-time high amid the TRUMP token mania. DOGE, HBAR, SHIB, and XLM are also deep in the red, while OM has soared by nearly 50% since last Friday.

Market Data

Market Cap: $3.744T | 24H Vol: $120B | BTC Dominance: 55.6%

BTC: $104,830 (-0.85%) | ETH: $3,352 (-1.5% ) | XRP: $3.09 (-3%)

This Week’s Crypto Headlines You Can’t Miss

Nvidia Stock Crashed 17% as DeepSeek OpenSource AI Revolution Slaps Down US Stocks. The week started with some big AI news from China as DeepSeek emerged as a cheaper and simpler alternative to ChatGPT. This sent shockwaves across Wall Street and crypto, with BTC tumbling below $100,000 briefly and Nvidia’s stock crashing by double digits.

CBOE Restarts US Solana ETF Race With Filings for 4 Asset Managers. The seemingly more favorable regulatory environment in the US toward the crypto industry has propelled many asset managers to submit filings for locally-based digital asset ETFs. Solana is among the leaders, as CBOE filed applications for SOL ETFs from four leading asset managers.

Bitcoin Price Drops by $1K as US Federal Reserve Maintains Interest Rates. BTC’s aforementioned drop from $103,000 to $101,500 after the US Federal Reserve’s move to keep the interest rates as is was short-lived. Nevertheless, the uncertainty about the US economy, inflation state, and future Fed decisions remains with Trump at the helm.

5 Reasons to Be Bullish on Ethereum (ETH) Despite January Drop. ETH is among the most underwhelming performers during this bull cycle, with its price failing to come anywhere near its 2021 all-time high of over $4,800. However, Etherealize founder Vivek Raman outlined five reasons why investors should feel bullish on ETH, but the apparent lack of whale activity suggests otherwise, at least for the short term.

Elon Musk-Led Tesla Reports Massive $600M Bitcoin Gain in Q4, 2024. A new rule in the US reporting book that allows firms to adjust digital asset valuations quarterly based on market prices allowed Elon Musk’s Tesla to report a substantial $600 million paper profit on its BTC investment that was made nearly four years ago.

Litecoin ETF One Step Closer to Approval: Will the SEC Finally Say Yes? Aside from SOL, the other larger-cap altcoins that have seen some movements on the ETF front include LTC and XRP. The former even surged by double digits this week as the US SEC officially recognized Canary Capital’s proposal for a Litecoin ETF and the review process has not begun.

Charts

This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Solana – click here for the complete price analysis.

Crypto investors can’t get enough of celebrity-backed tokens.

Errol Musk, father of Elon, is the latest to get involved in this trend.

He plans to raise $200 million with the MUSKIT meme coin – and the coin’s price has already reacted positively.

This news comes as the new meme project Solaxy (SOLX) sees enormous presale success, raising almost $17 million before its official launch.

Errol Musk Plans $200M Raise for Think Tank Project

Celebrity-backed meme coins have been everywhere in early 2025, but no one could have predicted Errol Musk would launch one.

He’s using the family name for his new crypto venture – Musk It (MUSKIT).

Elon’s father plans to raise up to $200 million through this coin.

The Musk It coin, initially launched by a Middle Eastern crypto firm in December, will reportedly fund the Musk Institute.

This for-profit think tank, headed by Errol and business partner Nathan Browne, will focus on projects like flying vehicles and scientific research.

Errol Musk isn’t shy about using the family name.

“I’ve been ‘Musking it’ for years,” he said.

MUSKIT token jumped over 200% after his announcement last night but has since plummeted – now hovering around $0.065.

Elon Musk himself isn’t involved in the project and has reportedly distanced himself from his father’s business dealings.

Red Flags Mount as Traders Question MUSKIT Coin’s Structure

Musk It has already raised some serious red flags among market analysts and traders.

They’re worried about the token’s structure and potential risks.

The lack of transparency around supply and ownership is the biggest concern.

Reports suggest Errol Musk’s new company may control up to 80% of the supply, leading some to suggest that a rug pull might be on the cards.

MUSKIT’s branding also raises eyebrows.

It uses imagery heavily associated with Elon’s companies, even though he’s not involved at all.

Many view this as misleading and predatory.

Then there’s the concept of celebrity-backed meme coins in general, which often see large initial gains, followed by massive losses for those who buy in after the top.

MUSKIT’s price has already rallied and dropped, so there’s concern it’s already “dead.”

One trader on Twitter even suggested it will “drop to zero” soon.

Only time will tell whether MUSKIT can overcome these challenges – or if it will become yet another cautionary tale for retail investors.

Solaxy Continues Gaining Traction with $16M+ Presale Raise & Multiple Analyst Endorsements

While MUSKIT faces skepticism, another project is powering ahead.

Solaxy is billed as Solana’s first Layer-2 scaling solution and has raised over $16.6 million in presale so far.

Early investors are betting it can fix Solana’s congestion problems.

Solaxy will process transactions off-chain using rollup technology, similar to Ethereum’s Layer-2 solutions, before settling them on the mainnet.

This could be huge – especially given the recent network strain from meme coin trading.

Trump-themed tokens, for example, helped Pump.fun recently hit a record weekly trading volume.

However, some users still faced slow transactions – or even failed transactions.

Solaxy’s Layer-2 will be powered by SOLX, its native token, which is available in presale.

SOLX is currently priced at $0.00162, although that price will increase in less than 24 hours when the next stage begins.

Investors can get in using crypto (e.g., ETH, SOL) or a bank card.

Crypto expert ClayBro thinks securing SOLX in the presale could be smart, stating it might be one of the “best meme coins to buy now.”

Fellow analyst Crypto Gains backed up his bullishness

So, while the MUSKIT coin’s future is uncertain due to transparency concerns, Solaxy appears to be building something of real value.

Visit Solaxy Presale

Disclaimer: The above article is sponsored content; it’s written by a third party. CryptoPotato doesn’t endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company or project mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.

Readers are also advised to read CryptoPotato’s full disclaimer.