Allegations that the SEC intends to ban retail crypto staking services in the United States are sweeping the internet.
Although they’re just rumours, crypto traders wouldn’t be surprised if the SEC decided that crypto staking should be outlawed.
Coinbase CEO Brian Armstrong Tweeted that it would be a “terrible path” for U.S. regulators to go down.
Coinbase CEO addresses crypto staking ban rumour
Brian Armstrong, CEO of leading crypto exchange Coinbase Tweeted about rumours surrounding the SEC and a potential ban on cryptocurrency staking services.
For Armstrong, crypto staking is an integral part of the cryptocurrency market and allows traders and DeFi users to help sustain and participate in blockchain networks. Blockchains that run on a PoS (Proof-of-stake) consensus mechanism require users to stake the network’s native token to keep things running smoothly.
From Brian Armstrong’s Twitter thread:
Staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.
Armstrong wants the U.S. to nurture new technologies instead of holding them back with strict regulations and laws. Wirumourth regard to cryptocurrencies and web3, the Coinbase CEO expressed a wish for such innovations to be developed in the U.S.
For Armstrong, “staking is not a security.” The current legal battle between XRP and the SEC, that has deemed Ripple's XRP token an unregistered security, is an ongoing example of the SEC stifling cryptocurrency innovation.
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