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

Brian Armstrong, CEO of Coinbase, expressed interest astir rumors that the U.S. Securities and Exchange Commission (SEC) whitethorn destruct cryptocurrency staking for retail customers successful the United States. Armstrong insisted that “staking is not a security” and that the inclination allows users to “participate straight successful moving unfastened crypto networks.”

Coinbase CEO Vocalizes Worry Over US Stifling Crypto Staking and Innovation

Coinbase CEO Brian Armstrong said helium has heard rumors that the U.S. Securities and Exchange Commission (SEC) plans to destruct cryptocurrency staking for retail customers successful the U.S. Armstrong shared his views connected Twitter and stated that helium doesn’t judge the apical securities regulator should prohibition cryptocurrency staking successful the country. “I anticipation that’s not the case,” Armstrong wrote, “as I judge it would beryllium a unspeakable way for the U.S. if that were allowed to happen.”

Sharing a “primer” connected the taxable written by Paradigm, Armstrong stressed that staking is not a security. “Staking is simply a truly important innovation successful crypto,” the Coinbase CEO said. “It allows users to enactment straight successful moving unfastened crypto networks. Staking brings galore affirmative improvements to the space, including scalability, accrued security, and reduced c footprints.”

Armstrong argued that caller technologies request to beryllium fostered, not stifled, successful the U.S. and that it is important for the state to person wide rules for fiscal services and Web3 industries for nationalist information reasons. “Regulation by enforcement doesn’t work,” Armstrong said. “It encourages companies to run offshore, arsenic happened with FTX.” Not everyone agreed with Armstrong, arsenic immoderate rapidly criticized staking and decentralized concern (defi). “It’s astir similar defi and staking isn’t decentralized,” 1 idiosyncratic quipped successful Armstrong’s Twitter thread.

Others poked fun astatine SEC Chairman Gary Gensler with a representation that included a punctuation that said: “Guess it’s clip for much protection.” Another idiosyncratic tweeted, “Realistically, the Howey trial is truthful wide that beauteous overmuch everything is simply a security. The existent trial is whether the SEC wants to/feels similar it tin modulate the thing.” Armstrong hopes that the manufacture volition enactment unneurotic to found wide rules and “sensible solutions” that support consumers portion besides “preserving innovation and nationalist information interests” successful the country.

What bash you deliberation astir Brian Armstrong’s proceeding rumors astir the imaginable prohibition connected cryptocurrency staking by the SEC? Share your thoughts successful the comments below.

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