Brian Armstrong recently shook the crypto community by talking about the rumors surrounding the SEC. According to the latest Twitter thread by the Coinbase CEO, the SEC might be planning to ban crypto staking for retail customers.
— CryptoNewsZ (@cryptonewsz_) February 9, 2023
The tweets stated how Brian hopes this to be a red herring since it would be tragic for the US. As a leading crypto exchange Coinbase holds a massive stature in the market. Thus, Brian’s citing these rumors gained major traction on the platform.
Even Charles Hoskinson, the founder of Cardano, got involved in the mix. According to Charles, Ethereum staking remains to be problematic. The Ethereum co-founder stated that temporarily giving assets to somebody else for returns appears like regulated products.
Bonds and slashing do not appear good here. On the other hand, non-custodial staking seems like the minting pools the market has used for 13 years.
The thread, currently standing at 2.8 million views, involved a major portion of the crypto community. Many of them supported Brian’s comment about staking being a crucial innovation for crypto.
The Coinbase CEO had also mentioned how staking lets users partake in operating crypto networks directly. It has brought several improvements to the industry, such as better security, decreased carbon footprints, and increased scalability.
Thus, it is pivotal to encourage such technologies without being overly focused on the lack of established rules. Web3 and financial services are a matter of national security, and these capabilities can be established in the US, added Brian.
Brian continued that enforcing regulations is not the answer, as it only motivates companies to run offshore. This happened with FTX, so hopefully, authorities can work together to release clear guidelines for the space.
Therefore, coming up with sensible solutions is the way to secure customers while also facilitating national security interests and innovation in the US.