The Chief Executive Officer of the cryptocurrency exchange Coinbase, Brian Armstrong, addressed rumors that the US Securities and Exchange Commission might outlaw bitcoin staking.
Coinbase Chief Executive Officer Brian Armstrong discussed the possibility that the United States Securities and Exchange Commission could outlaw cryptocurrency staking for ordinary investors. On Wednesday, Brian Armstrong tweeted, “I hope that’s not the case as I feel it would be a bad road for the United States if it was allowed to happen if it was allowed to happen.”
Why is crypto staking necessary?
Staking influences retail investors as it provides rewards by locking up coins without needing the most expensive computer equipment.
Later, Armstrong elaborated on the importance of staking because it allows people to participate in “running open crypto networks.” It brings scalability, increase security, and reduced carbon footprints.
The impact can occur if Staking Ban in the US
Armstrong stands against Gary Gensler — the chair of the US. Securities and Exchange Commission, because this could kick out the liquidity from the market, and again speculators may face consolidation.
The recent bounce in the market is healing the Miners’ and investors’ losses. Conversely, the crypto market may again see a deep dive under the ocean if rumours go right.
Some industry commentators have suggested that the SEC might go after centralized parties that offer staking services rather than the technology itself, as it “that’d be a harder fight that could crush them in precedent.”
Compiled by Coinbold