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 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.