Coinbase CEO Brian Armstrong believes that US regulators may ban retail users from staking cryptocurrencies, and this is bad for the entire industry.
According to Brian Armstrong, such bans do not help the development of the industry in the United States, but rather slow it down and force companies to leave the country. In addition, Armstrong said that staking does not fall under the concept of offering securities, so there is nothing to prohibit here.
“There are rumors that the SEC may get rid of U.S. cryptocurrency staking for retail investors. I hope that in reality there are no such conversations, it would be a terrible choice for the United States. Staking is not securities, and if it is carried out abroad, then the question of national security arises. Regulation through penalties does not work, it only forces companies to move their business offshore. Remember what happened to FTX,” the Coinbase CEO wrote.
It is not yet known whether the SEC can actually ban staking in the US and how. Perhaps the ban is only being considered for staking on third-party sites. Coinbase also offers such services. After all, it is quite difficult to implement a ban on direct staking in the blockchain.
It was recently reported that the SEC is planning to tighten checks on investment advisors offering investments in digital assets.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
