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 made the comments in a Feb. 9 Twitter thread which has already been viewed over 2.2 million times, after noting they’ve heard “rumors” that the U.S. Securities and Exchange Commission “would like to get rid of crypto staking” for retail customers.
“I hope that’s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.”
Armstrong did not share where the rumors originated from but continued to note that staking was “a really important innovation in crypto.”
“Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints,” he added.
2/ Staking is a really important innovation in crypto. It allows users to participate directly in running open crypto networks. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.
— Brian Armstrong (@brian_armstrong) February 8, 2023
Armstrong also referenced an Oct. 5 blog post from crypto investment firm Paradigm, which argued that Ethereum’s transition to proof-of-stake and its subsequent “staking” model does not make it a security.
The Paradigm post came just a few weeks after SEC Chairman Gary Gensler suggested that proof-of-stake (PoS) cryptocurrencies could trigger securities laws on Sep. 15, 2022, while speaking to reporters after a Senate Banking Committee meeting.
Armstrong also lambasted the current lack of regulatory clarity in the U.S. and subsequent “regulation by enforcement” that he says is driving companies offshore, such as crypto exchange FTX.
He has reiterated calls for regulation that provides clear rules for the industry while preserving innovation.
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