Does anyone on here actually view the latest SEC action on centralized staking providers as medium or long term bearish?

This would seem to be effectively a positive by reducing centralization.

I think you are right there are meaningful positive externalities… but doesn’t override the regulatory failure

Contributor to crypto, building Based Management, co-founder of PoolTogether Inc, instigator of pleasrDAO

https://leighton.mirror.xyz/

The positive view on this is they are trying to rightsize the ship and simply get ahead of potential future regulatory failures.

I haven’t read the ToS or Staking Agreements from Coinbase or Kraken, but I wonder if they explicitly spelled out they won’t rehypothecate staked assets, shuffle funds around internally,

Coinbase does, unsure on Kraken. The supposed purpose of the regulation is good but it’s not what is actually happening. Commissioner Pierce’s dissent captured some of the issues: https://www.sec.gov/news/statement/peirce-statement-kraken-020923