SEC wants to clamp down on cryptocurrency staking of U.S. retail users, says Coinbase CEO

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brian armstrong on staking ban

Coinbase CEO Brian Armstrong in his latest tweets has confirmed his fears around staking ban.

Coinbase CEO took to Twitter and unfolded his remarks on the possible ban on cryptocurrency staking by SEC. The crypto regulators are continuing to tighten their hold on digital assets and a blanket ban on cryptocurrency staking maybe somewhere around the corner for U.S customers.

In the Twitter thread, he said, “We’re hearing rumours 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.”

Staking is the innate feature of Proof-of-work dependent blockchains to secure the network and many projects use it to reward their customers. Staking generates ROI for users who stake their tokens under a pre-determined vesting period to generate interest.

Things are not going in the favour of the crypto industry after FTX exchange filed for bankruptcy last year. FTX has misused $10 billion of investor’s money which was enough to raise the eyebrows of the Security and Exchange Commission.

An hour after Armstrong’s tweet, the official Twitter handle of Coinbase tweeted its support for staking, saying that it has the potential to accelerate the adoption of digital payments globally because staking doesn’t depend on any centralized authority to function.

For staking to work properly, it has to be decentralized, global and neutral.

If SEC passed the bill to ban staking for the U.S. retail users, blockchains and Dapps will have no choice but to spread their reach in Latin America, Asia and Europe.

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