Crypto stakers, look out — U.S. regulators may be coming for you. Coinbase CEO Brian Armstrong alluded to a troubling rumor last week on Twitter:
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.
Staking is a way of earning rewards for holding certain cryptocurrencies. And it’s a very common practice. Staking is an essential function of Ethereum, for example, now that it’s a proof of stake crypto. So to prevent crypto users from staking would be… well, pretty untenable.
In this episode of Crypto Monitor, Vin Narayanan and Allison Brickell explore different responses to the rumor, the larger context for it, and more.
Thanks for watching!