Coinbase CEO Talks Rumours Of SEC Wanting To Ban Crypto Staking!
Coinbase CEO Talks Rumours Of SEC Wanting To Ban Crypto Staking!
Recently, CEO of crypto exchange Coinbase, Brian Armstrong, made a lengthy Twitter thread discussing a rumor that he had heard regarding the U.S Securities and Exchange Commission (SEC) and their apparent plans to ban retail investors from engaging in cryptocurrency staking.
Armstrong’s Take
Although Armstrong doesn’t state exactly where he heard those rumors from, the Coinbase CEO expresses his dissatisfaction arguing that “it would be a terrible path for the U.S. if that was allowed to happen.”
Armstrong further points out that staking is “an important innovation in crypto” and that it brings many positives to space.
“It [staking] 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.” The CEO tweeted.
“We need to make sure that new technologies are encouraged to grow in the US, and not stifled by lack of clear rules. When it comes to financial services and web3, it’s a matter of national security that these capabilities be built out in the U.S.”
Related: Binance To Temporarily Suspend Transfers In U.S Dollars
Coinbase CEO says he is getting word that the USA is intending to ban #crypto staking!
Huge and sad is true…
— Lark Davis (@TheCryptoLark) February 8, 2023
Armstrong also further talks about how the SEC’s choice to completely ban something may not be a great way to go about the problem as regulatory enforcements like this are what cause many exchanges and crypto firms to “operate offshore.” Armstrong points out that this is exactly what had happened with FTX.
“Hopefully we can work together to publish clear rules for the industry, and come up with sensible solutions that protect consumers while preserving innovation and national security interests in the U.S.”
Staking made up ~11% of Coinbase's revenue in Q3 https://t.co/47wVVc7AFG pic.twitter.com/0sefBOhO2M
— db (@tier10k) February 8, 2023
SEC On Staking
Despite there being no current confirmation on whether or not these rumors are true, it doesn’t surprise many as this isn’t the first time the SEC has expressed their negative views towards crypto staking.
Last year following the long-awaited Ethereum merge that saw the second-largest cryptocurrency transition from a Proof-of-Work to Proof-of-Stake, SEC chair Gary Gensler made a couple of remarks suggesting that staking could actually cause cryptocurrencies to be considered a security.
“From the coin’s perspective […] that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others,” Gensler said at the time.
Related: Here’s Why The Sandbox (SAND) Price Is Seeing Massive Gains Today!
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