SEC planning retail Crypto staking ban, says Coinbase CEO

Brian Armstrong pointed out a very bitter possible decision from the US SEC agency and noted that it will bring very big pressure on the Crypto sector innovations.

Brian Armstrong is the CEO and co-founder of the Nasdaq-listed public Crypto exchange Coinbase. Coinbase is a second-ranked Crypto exchange, in terms of 24-hour global crypto trade volume on its platform.

On 9 Feb 2023, Coinbase CEO took to Twitter to share the information that he received from internal sources.

Armstrong noted that as per rumours the United States Securities and Exchange Commission (SEC) is planning to ban retail Crypto staking in the US and if it will happen then surely it will be a very big terrible decision for the US crypto sector.

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“SEC would be like to get rid of crypto staking in the U.S. for retail customers. I hope that’s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen, “Coinbase CEO said.

Further Armstrong explained the important role of staking systems and noted that it helps to bring better security & better scalability to the crypto network.

2/ Staking is a really important innovation in crypto. 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.

— Brian Armstrong (@brian_armstrong) February 8, 2023

According to Coinbase’s CEO staking system is not any subject under the Securities law and also we should ensure that the Crypto sector should evolve with Innovations instead to face pressure because of unclear regulatory policies.

Armstrong believes that such regulatory action will directly force the Crypto companies to run their business offshore and that further may result in bad incidents, more likely to the bankruptcy of the FTX exchange.

In the last, Coinbase CEO said that Crypto participants will work together to release clear laws & policies for the crypto sector.

6/ Hopefully we can work together to publish clear rules for the industry, and come up with sensible solutions that protect consumers while preserving innovation and national security interests in the U.S.

— Brian Armstrong (@brian_armstrong) February 8, 2023

Read also: Dubai watchdog imposes new rules on Crypto companies

SEC planning retail Crypto staking ban, says Coinbase CEO

 

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