Brian Armstrong has heard rumors that the United States will restrict cryptocurrency staking. He reacted by indicating that it would be a “terrible path” for the United States. Indeed, the value of crypto staking assets reached $42 billion in the fourth quarter of 2022 alone.
Can the SEC deal another blow to cryptocurrencies?
The SEC is the stock market policeman in the United States and the decision to ban crypto staking would be theirs. Without even waiting for it to be confirmed, the CEO and co-founder of Coinbase strongly condemned it. He accused the SEC of holding back innovation and the evolution of the crypto industry in the country. In one of his tweets reported by The Blockwe can read : ” We hear rumors that the SEC would like to get rid of crypto staking in the US for retail customers. I hope it’s not, because I think it would be a terrible path for the United States if allowed. “.
” It is a matter of national security for the United States to develop this capability,” he added. “Regulation by app doesn’t work. It encourages companies to operate overseas, which happened with FTX. he asserted.
What is crypto staking?
Staking consists of holding cryptocurrencies in your wallet for a period of time. In exchange, the investor gets rewards that can even constitute passive income. The crypto that is blocked for a time helps support the network. If the restrictions persist, several crypto exchanges like Coinbase will find themselves in trouble. Indeed, staking is an easy way for many to monetize their cryptocurrency. Restrictive measures could have a negative impact on the adoption of cryptocurrencies in the United States. ” Staking brings many positive improvements to the industry. Including scalability, increased security and reduced carbon footprint said Armstrong.
For several years, the SEC has constantly sabotaged efforts to develop the crypto industry in the United States. We know his well eternal lawsuit against Ripple. Wouldn’t it be time for the United States to create a different and specialized institution to monitor the crypto market?
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