Crypto staking restrictions would be terrible according to Coinbase CEO

The SEC terminated the staking program of the Kraken exchange in the United States earlier this month. For the American regulator, this is a ” win for investors ” of the region. But, for many crypto players, this decision lacks relevance and does not benefit investors. SEC Commissioner Hester Peirce called it a paternalistic and lazy approach. In this context, he attacked the fines imposed on the Kraken exchange by the SEC. At the same time, many wonder what the regulator actually blames for staking. Timothy Massad, the former chairman of the Commodity Futures Trading Commission (CFTC), has made statements on the subject.

The SEC must clarify the situation around staking!

The former CFTC chairman recently spoke about the SEC and its crackdown on crypto staking. It was this Thursday, during a conference of the Taiwan Fintech Association in Taipei. Timothy Massad explained that it is necessary for the SEC to come clarify the vagueness surrounding the type of staking allowed. Indeed, after the regulator’s coercive action against Kraken, it is difficult to say what is allowed for staking.

Massad has also highlighted the fact that we still do not know what impact this action can have. He suggested that this could represent a broader crackdown on staking. ” The Kraken case, by its terms, was very clearly an investment solicitation and falls within the definition of an investment contract. So the facts clearly show why the SEC took these steps. », said Massad.

More details on the words of the former boss of the CFTC

The former leader recalled that the staking offered by Kraken differs from what other platforms offer. He added : ” We don’t know at this time if it’s just these features that prompted the SEC to take this action or if it represents a broader attack on staking. “. Now we shouldwait and see if the SEC sheds some light on what kind of staking is allowed and what isn’t“.

So far, despite everyone’s expectations, the SEC continues to crack down on crypto, unabated. Also, she investigates various crypto companies among which we find Paxos Trust Company. Paxos is currently in talks with the SEC about the BUSD stablecoin.

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