- The CEO of Coinbase shares his thoughts on a possible ban on crypto retail staking.
- Brian Armstrong says this move will lead to companies moving offshore.
- He believes the US should set regulations that will support crypto businesses.
Brian Armstrong, the CEO and co-founder of cryptocurrency exchange Coinbase, has voiced his concerns over the rumored ban of retail crypto staking in the US by the Securities and Exchange Commission (SEC).
Armstrong believes this move would be a “terrible” decision and result in more businesses leaving the country. He sees staking as a positive innovation in the crypto space, bringing benefits such as increased security, scalability, and reduced carbon footprints.
In fact, Armstrong goes on to criticize the lack of regulatory clarity in the US and the enforcement-driven regulation that has pushed companies overseas. He calls for clear regulations that still allow innovation.
He even goes on to share a blog post in his Twitter thred where he specifies how staking in not a security. The CEO is adamant that banning retail staking in crypto will push more innovation away from the US.
Furthermore, he stresses on how staking is an imperative feature of innovation for crypto. Specifically as it allows users to participate directly on running open crypto networks. Presently, the top four staked cryptos have over $55 billion in assets, according to Staking Rewards, showing the potential impact a ban could have on the country’s crypto industry.
Some experts believe the SEC may target centralized parties offering staking services rather than the technology itself, with Gabriel Shapiro, the general counsel for Delphi Digital’s research and development arm, suggesting that staking services provided by centralized exchanges like Coinbase may constitute a security.
Ultimately, Armstrong believes that regulation by enforcement doesn’t work. He also says that new technology should be embraced and encouraged to grow within the United States. Lastly, he hopes to see the country work together to publish a clear set of sensible rules that will help the industry flourish.
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