Coinbase CEO Armstrong Says that SEC Wants to Ban Retail Staking
Coinbase CEO Brian Armstrong recently shared a statement about the Securities and Exchange Commission’s (SEC) stance on retail staking, the money-making mechanism at blockchains like Ethereum. The SEC, according to Armstrong, plans to restrict retail staking, which has sparked discussion and controversy in the crypto community.
Retail staking is holding and staking cryptocurrency in exchange for incentives comparable to a savings account. Individuals can generate passive income while contributing to a blockchain’s network security.
SEC Retail Staking Ban Thwarts Crypto Industry Growth
According to Armstrong, the SEC’s proposed limitation on retail staking would harm the crypto industry’s growth since it would limit the accessibility and engagement of retail investors in the area. He also emphasized the need to allow retail investors to participate in staking since it helps to decentralize the network and promote financial inclusion.
The SEC has not released an official response to Armstrong’s comments. In certain professionals’ opinion, a ban on retail staking would not be required if appropriate restrictions are put in place, and the commission is currently considering the issue.
SEC to Crack Down on Crypto Even More in 2023?
While SEC has been aggressively pursuing regulatory action against the crypto trading marketplace throughout 2022, to the point of being deemed a “land grab authority” by one US Lawmaker, there are indications that it may step up its vigilance even more in 2023.
On February 7th, the Commission listed “new technologies and crypto-assets” as one of its Division of Examinations’ major objectives for this year.
Reportedly, the SEC’s first high-profile investigation of 2023 is nearing a settlement. The agency’s investigation into Kraken, a bitcoin exchange, is reportedly winding down. Ripple may finally prevail in its lengthy fight against the SEC this year, a prediction shared by many experts and the company’s CEO.
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