November 8, 2024

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Getting rid of crypto staking would be a ‘terrible path’ for the US — Coinbase CEO

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Getting rid of crypto staking would be a 'terrible path' for the US — Coinbase CEO

The CEO and co-founder of cryptocurrency exchange Coinbase, Brian Armstrong, believes that banning retail crypto staking in the United States would be a ‘terrible’ move by the country’s regulators. 

Armstrong .

Some industry commentators have suggested that the SEC might go after centralized parties which offer staking services rather than the technology itself, believing the latter would be a losing battle which would “crush them in precedent.”

The general counsel for Delphi Digital’s research and development arm, Gabriel Shapiro, suggested there is a strong argument that staking services provided by centralized exchanges like Coinbase constitute a security, drawing parallels between them and other “Earn” products.

Coinbase is currently subject to an ongoing SEC probe, which Coinbase revealed in an Aug. 9, 2022 SEC filing was in relation to its staking rewards amongst other offerings.