Recent rumors suggest that the U.S. Securities and Exchange Commission is looking at eliminating crypto staking for retail customers. Many in the crypto industry are concerned about this potential move, including Brian Armstrong (Co-founder and CEO at Coinbase).
Armstrong posted his thoughts to Twitter. He stated that if these rumors were true it would be “terrible for the U.S.”. Staking, Armstrong explained, is a significant innovation in crypto that allows users directly to participate in open crypto networks. This has many benefits including improved security, scalability and a reduced carbon footprint.
Armstrong believes that the U.S. should encourage, not suppress, new technologies. It is vital that web3 and financial services are developed in the United States for national security purposes. He warns, however, that regulation by enforcement is not effective and can lead to companies operating overseas.
Coinbase CEO, John C. Reilly, calls on the SEC and the industry to come together and publish clear rules. He also urges the SEC to find sensible solutions to protect consumers and preserve innovation in the U.S.
According to some, the SEC is rumored to be looking to end crypto staking in retail customers. This has caused concern and criticism within the crypto industry. Clear regulations are essential to allow new technologies to flourish and grow in the U.S.