SEC May Ban Crypto Staking in the US, According to Coinbase CEO
By:C, FionaThere are rumors that the U.S. Securities and Exchange Commission (SEC) is considering banning crypto staking for retail investors. Coinbase CEO Brian Armstrong engaged in this speculation noting that if the SEC bans cryptocurrency staking, it could derail the growth of the crypto market.
The rumors gained momentum after SEC Chairman Gary Gensler previously stated that cryptocurrencies allowing staking options could be classified as securities under the Howey test.
Armstrong mentioned that the SEC planning to ban cryptocurrency staking is a “terrible” idea. He said,
“We’re hearing rumors that the SEC would 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,” tweeted Armstrong.
Will SEC Really Ban Crypto Staking in the US?
The SEC declined to provide a comment on the issue and remains tight-lipped about the developments. No official announcement about banning staking has been made public at press time.
Armstrong stressed that staking is one of the most important sectors in the cryptocurrency industry. It allows investors the freedom to control their digital assets rather than going through banks and other centralized entities.
“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,” he said.
Nonetheless, Armstrong cited the need for regulators to come up with solutions and rules to make it easier for retail investors. “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,” he said.
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