• SEC is reportedly considering banning crypto staking in the US for retail customers.
• Coinbase CEO Brian Armstrong tweeted saying that crypto staking is an essential innovation in the crypto space.
• Charles Hoskinson, the founder of Input Output Global commented on the matter saying Ethereum staking is problematic.
SEC Could Scrap Crypto Staking
The Securities and Exchange Commission (SEC) might be looking to ban crypto staking for retail customers in the US. Coinbase CEO Brian Armstrong tweeted saying that staking is an essential innovation in the crypto space and should not be banned. The tweet met with criticism from Charles Hoskinson who said Ethereum staking is problematic.
What Is Crypto Staking?
Crypto Staking is when users lock up their crypto assets for a certain amount of time to help support certain functions of a blockchain including governance and verifying transactions and get some staking rewards in return.
Brian Armstrong’s Revelation Met With Scorn
Armstrong’s revelation was met with scorn from many quarters, while some agreed with him, others responded with memes and derision. Charles Hoskinson commented on the matter saying that „Ethereum staking is problematic“ as it resembles regulated products such as slashing and bonds which he believes are not so good. On the other hand, he said non-custodial liquid stalking like mining pools used for 13 years are better since they offer more security.
Positive Impacts Of Crypto Staking
Brian Armstrong highlighted some positive impacts of crypto staking which include increased security and scalability as well as helping reduce carbon footprints. He also pointed out that it allows users to participate directly in running decentralized blockchain networks without having to invest large amounts of capital into buying cryptocurrency tokens or coins outrightly.
It remains to be seen if SEC will go ahead with its plans to ban crypto Stacking for retail customers or not but many people have raised their concerns about this potential decision and its possible effects on the industry at large.