• The United States Securities and Exchange Commission (SEC) is reportedly looking to ban retail investors from staking cryptocurrency in the U.S.
• Coinbase CEO Brian Armstrong has stated that such a move would be “terrible” for the country, as it could stunt the growth of new technologies.
• The SEC has placed crypto assets under its scope and launched investigations into exchanges offering unregistered securities.
SEC Declares War on Crypto
It seems as if regulators, and specifically the SEC, have declared an all-out war on cryptocurrencies. Rumors are floating that the United States Securities and Exchange Commission (SEC) would like to ban retail investors from participating in cryptocurrency staking.
Coinbase CEO Reacts
According to a Twitter thread by Coinbase CEO Brain Armstrong, the SEC is seeking a ban on crypto staking in the U.S. Regulators have been doubling down on their scrutiny of the crypto sector following the collapse of several major players in the industry, which sent the crypto market into a downward spiral. Fear is spreading that the SEC wants to come after cryptocurrency staking, or so says Coinbase CEO Brian Armstrong. In a Twitter thread, 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 Cryptocurrency staking is the practice whereby users can deposit proof-of-stake tokens to a blockchain to secure the network and, in such a way, receive rewards for doing so, such as on Ethereum network .
SEC Investigates Crypto Exchanges
SEC Goes on a Crypto Crusade Since FTX collapsed in November, regulators have firmly placed crypto assets under its scope by naming it as one of its top priorities for examination this year 2023 . The Division of Examination of SEC recently published its list of priorities wherein they said: “The Division will conduct examinations of broker-dealers and RIAs that are using emerging financial technologies or employing new practices.” This includes technological solutions used for marketing compliance and servicing investor accounts with adequate risk management standards observed by them . On Wednesday Bloomberg reported that Kraken faces investigation from SEC over allegations related to offering unregistered securities .
Armstrong’s View
Armstrong expressed his opinion regarding view of SEC chairman Gary Gensler approach towards cryptocurrencies; he said “regulation by enforcement” will see firms opting offshore operations . He argued this matter as national security issue; he added “We need to make sure new technologies grow within US rather than getting hampered due lack of clear rules .”
Conclusion
The US government’s stance towards cryptocurrency remains unclear with no end in sight yet but regulatory scrutiny over these digital assets continues unabatedly , resulting stiff competition among different exchanges operating within US borders .
The US government’s stance towards cryptocurrency remains unclear with no end in sight yet but regulatory scrutiny over these digital assets continues unabatedly , resulting stiff competition among different exchanges operating within US borders .