Banning retail crypto staking in the US would result in even more businesses moving offshore, argues Coinbase co-founder Brian Armstrong.
CEO and co-researcher of the cryptocurrency exchange Coinbase Brian Armstrong believes that banning retail crypto staking in the United States will be a “terrible” move by regulators in the country.
Armstrong said this on February 9 Twitter thread that has been viewed more than 2.2 million times, after they said that they had heard “rumors” that the United States Securities and Exchange Commission “will want to eliminate crypto staking” for retail customers.
“I think not because I think it would be a terrible way for the United States if it was allowed.”
Armstrong did not share the origin of the rumor, but said staking is “a significant innovation in the crypto space.”
“Payment brings many positive improvements to space, including scalability, increased security, and reduced carbon footprint,” he added. Armstrong also cited an October 5 blog post from crypto investment firm Paradigm, which argued that Ethereum’s transition to proof of stake and its subsequent “staking” model is not proof of stake. Paradigm’s release comes just weeks after SEC Chairman Gary Gensler suggested that proof-of-stake (PoS) cryptocurrencies could trigger securities regulations. He said this on September 15th, when speaking to reporters after a meeting of the Senate Banking Committee.
Armstrong also said that there is currently a lack of clarity in the United States and the “regulation of the application” which he said is driving companies abroad, such as the crypto exchange FTX. He reiterated his call for legislation that provides clear rules for companies and protects innovation.
According to Staking Rewards, the four funds of staked cryptocurrencies from the market cap receive more than $ 55 billion in assets, suggesting that the ban of the country will be a crushing blow to the crypto industry in the world which has already seen the exit of crypto-related transactions. . Some industry commentators suggest that the SEC may work with central organizations that offer staking services rather than the technology itself, believing that attacking the latter would be a losing battle.
General Counsel for Delphi Digital’s research and development arm, Gabriel Shapiro, suggested that there is a strong argument that staking services provided by centralized exchanges such as Coinbase constitute a security, drawing similarities between them and other “Earn” products.
Coinbase is currently the subject of an ongoing SEC investigation, which Coinbase announced in August. 9 SEC filings related to his salary, among other contributions.
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