SEC could scrap crypto staking, Coinbase CEO reveals

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Coinbase CEO Brian Armstrong tweeted saying The SEC could ban crypto staking
Armstrong nonetheless mentioned that crypto staking is an important innovation in crypto.
The revelation was met with criticism from Charles Hoskinson who mentioned Ethereum staking is problematic.

The co-founder and CEO of Coinbase Brian Armstrong earlier at the moment tweeted revealed that he’s listening to rumours that the SEC intends to “get rid” of crypto staking within the US for retail clients.

1/ We’re listening to rumors that the SEC wish to do away with crypto staking within the U.S. for retail clients. I hope that is not the case as I consider it could be a horrible path for the U.S. if that was allowed to occur.

— Brian Armstrong (@brian_armstrong) February 8, 2023

According to Armstrong, staking is a crucial innovation within the crypto house because it permits crypto customers to take part instantly in working decentralized blockchain networks. In his follow-up tweets, he mentioned that crypto staking has introduced many constructive enhancements within the crypto business together with growing safety and scalability and likewise serving to in lowering carbon footprints.

For these new to crypto staking, it’s when customers lock up their crypto property for a sure period of time to assist help sure features of a blockchain together with governance and verifying transactions and get some staking rewards in return.

Armstrong’s revelation met with scorn

While some maintain the identical views as Brian Armstrong, some responded with memes and derision. Charles Hoskinson, the founding father of Input Output Global weighed in on the matter saying that “Ethereum staking is problematic.”

Hoskinson argues that giving up property briefly to another person in return for rewards resembles regulated merchandise. He mentioned:

“Slashing and bonds [are] not so good. Non-custodial liquid staking on the other hand is like the mining pools we’ve used for 13 years… It’s sad that all proof of stake protocols might get lumped together due to a fundamental misunderstanding about the actual facts of operation and design.”