Coinbase CEO Brian Armstrong Expresses Concern Over Rumors of SEC Ban on Crypto Staking for Retail Customers

Coinbase CEO Brian Armstrong Expresses Concern Over Rumors of SEC Ban on Crypto Staking for Retail Customers

Brian Armstrong, CEO of Coinbase, expressed concern about rumors that the U.S. Securities and Exchange Commission (SEC) might get rid of cryptocurrency staking for retail prospects within the United States. Armstrong insisted that “staking is not a security” and that the pattern permits customers to “participate directly in running open crypto networks.”

Coinbase CEO Vocalizes Worry Over US Stifling Crypto Staking and Innovation

Coinbase CEO Brian Armstrong said he has heard rumors that the U.S. Securities and Exchange Commission (SEC) plans to get rid of cryptocurrency staking for retail prospects within the U.S. Armstrong shared his views on Twitter and said that he doesn’t consider the highest securities regulator ought to ban cryptocurrency staking within the nation. “I hope that’s not the case,” Armstrong wrote, “as I believe it would be a terrible path for the U.S. if that were allowed to happen.”

Sharing a “primer” on the topic written by Paradigm, Armstrong stressed that staking will not be a safety. “Staking is a really important innovation in crypto,” the Coinbase CEO said. “It 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.”

Coinbase CEO Brian Armstrong Expresses Concern Over Rumors of SEC Ban on Crypto Staking for Retail Customers

Armstrong argued that new applied sciences must be fostered, not stifled, within the U.S. and that it’s important for the nation to have clear guidelines for monetary companies and Web3 industries for nationwide safety causes. “Regulation by enforcement doesn’t work,” Armstrong said. “It encourages companies to operate offshore, as happened with FTX.” Not everybody agreed with Armstrong, as some rapidly criticized staking and decentralized finance (defi). “It’s almost like defi and staking isn’t decentralized,” one particular person quipped in Armstrong’s Twitter thread.

Others poked fun at SEC Chairman Gary Gensler with an image that included a quote that stated: “Guess it’s time for more protection.” Another particular person tweeted, “Realistically, the Howey test is so broad that pretty much everything is a security. The real test is whether the SEC wants to/feels like it can regulate the thing.” Armstrong hopes that the business will work collectively to determine clear guidelines and “sensible solutions” that shield customers whereas additionally “preserving innovation and national security interests” within the nation.

What do you concentrate on Brian Armstrong’s listening to rumors in regards to the potential ban on cryptocurrency staking by the SEC? Share your ideas within the feedback beneath.

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