The SEC May Ban Crypto Staking for Retail Customers: Brian

1. According to Brian Armstrong, the SEC may ban staking for retail customers.
2. SEC’s inspection division has placed a significant emphasis on cryptocurrencies and digital assets.
3. A product manager pled guilty in what U.S. authorities are calling the first insider trading case.

Brian Armstrong, the CEO of Coinbase Global Inc., intensified his verbal battle with the Securities and Exchange Commission by saying that he has received allegations that the organization intends to “get rid” of individual investors staking cryptocurrency.

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He said that the process of staking is “a tremendously significant invention” and tweeted, “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.”

Following Armstrong’s post, at least one more crypto Twitter commenter said that they had verified an action against Coinbase being taken by many agencies. 

After the failure of FTX in November 2022, the SEC’s inspection division has placed a significant emphasis on cryptocurrencies and digital assets as one of its main priorities for the year 2023. The SEC said:

The Division will conduct examinations of broker-dealers and RIAs that are using emerging financial technologies or employing new practices, including technological and online solutions to meet the demands of compliance and marketing and to service investor accounts.

According to research by Staked, a non-custodial staking service provider, the value of staked assets was around $42 billion in the fourth quarter of 2022, and yearly staking incentives were estimated to be $3 billion during the same time period. This number does not include just individual investors in the retail market.

In other reports, according to his attorney, a former Coinbase Global Inc (COIN.O) product manager pled guilty in what U.S. authorities are calling the first insider trading case involving cryptocurrencies on Tuesday.

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