Currently, there are rumors that the SEC of the United States is thinking of banning crypto staking services. A number of personalities have given their opinions on the matter. For example, Coinbase CEO Brian Armstrong spoke about user staking rewards. He explained that these are very similar to the dividends that holders of security tokens receive. Another senior executive in the crypto sector reacted on the issue of staking. This is Cardano founder Charles Hoskinson who got tough on the Ethereum blockchain.
Charles Hoskinson criticizes the centralization of Ethereum staking
Crypto experts like Charles Hoskinson find there is a real problem with Ethereum staking. The CEO of Cardano believes that staking on this blockchain is problematic for the crypto sector, with its centralization. He finds that Ethereum tokens should not remain locked in staking smart contracts. Hoskinson explained that this inaccessibility gives the impression that tokens are regulated products.
The founder of Cardano made these statements while responding to a tweet from the CEO of Coinbase. Indeed, Brian Armstrong once said: We hear rumors that the SEC wants to get rid of crypto staking in the US for retail clients. I hope that is not the case, because I believe it would be a terrible path for the United States if that were allowed to happen“.
It was then that Charles Hoskinson has explained : “Ethereum staking is problematic. Temporarily giving up your assets to someone else to get a return is a lot like regulated products. Staking and bonds are not so good“. On the other hand, he believes that liquid staking without custody is an interesting operation. He claimed it looked like “to the mining pools we have been using for 13 years“.
For the CEO of Coinbase, “staking is a very important innovation in the field of crypto“. The manager explained that this operation allows users to “participate directly in the operation of open crypto networks“. He pointed out that staking has several advantages in the crypto sector. The operation would bring a variety of positive improvements to the cryptosphere. Among these are “scalability, increased security and reduced carbon footprint“.
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