Coinbase CEO says SEC could ban crypto staking for retail clients

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Brian Armstrong; Photo Source: WSJ
In the words of Brian Armstrong, “We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. 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.”

In a recent Twitter thread, Coinbase CEO Brian Armstrong cautioned the community about rumors of the SEC’s ban on retail staking. He defended the practice of staking by calling it an important innovation in the crypto industry, adding,

“[Staking] 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.”

According to him, the "regulation by enforcement" carried out by financial authorities is responsible for driving crypto platforms offshore.



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Coinbase also published a tweet claiming that crypto staking needs to remain “decentralized, neutral, and global.”

Meanwhile, the SEC has neither confirmed nor denied the rumors.

The news came as the Ethereum (ETH) community braces for the Shanghai hard fork. The highly-anticipated update will allow users to un-stake their Ethereum assets. 

The prices of governance tokens of Ethereum staking protocols have increased following the announcement. Lido’s LDO token has surged by 9.2%, while Rocket Pool’s RPL coin is up by 12%.

Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

In the words of Brian Armstrong, “We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. 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.”

In a recent Twitter thread, Coinbase CEO Brian Armstrong cautioned the community about rumors of the SEC’s ban on retail staking. He defended the practice of staking by calling it an important innovation in the crypto industry, adding,

“[Staking] 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.”

According to him, the "regulation by enforcement" carried out by financial authorities is responsible for driving crypto platforms offshore.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Coinbase also published a tweet claiming that crypto staking needs to remain “decentralized, neutral, and global.”

Meanwhile, the SEC has neither confirmed nor denied the rumors.

The news came as the Ethereum (ETH) community braces for the Shanghai hard fork. The highly-anticipated update will allow users to un-stake their Ethereum assets. 

The prices of governance tokens of Ethereum staking protocols have increased following the announcement. Lido’s LDO token has surged by 9.2%, while Rocket Pool’s RPL coin is up by 12%.

Written by
Ayush Pande