staking Mike Dalton · 10 hours ago · 2 min read Brian Armstrong said that his crypto company has heard rumors to that effect.2 min read Updated: February 9, 2023 at 3:35 am Cover art/illustration via CryptoSlate Ad Coinbase CEO Brian Armstrong said on Feb.8 that his company has heard rumors that the United States’ main securities regulator intends to ban staking.Armstrong wrote on Twitter: “We’re hearing rumors that the [U.S.Securities and Exchange Commission] 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 involves depositing a cryptocurrency into a contract.
Those who do so earn interest on their deposit, and they may validate blocks if they stake on-chain.The practice is considered to be much more efficient and scalable than alternatives like Bitcoin mining.Armstrong defended the practice in those regards.He said that “staking is not a security” and added that it provides various benefits to crypto networks.He also referred to an earlier debate that took place as Ethereum transitioned to a staking model last year.One argument against regulation at that time said that staking involves no common enterprise or intent to gain profits solely from the efforts of others — two criteria that are required for investment contracts to be regulated under securities law.Coinbase has already faced scrutiny from the SEC over adjacent interest-bearing products.It canceled its Lend product after the regulator threatened charges in 2021.
The firm also said in late 2022 that the SEC has requested information about its services including “its staking programs, and its stablecoin and yield-generating products.” It is not clear whether the SEC supposedly intends to ban staking on third-party providers like Coinbase, or whether it intends to restrict staking at a more basic level.However, it would be difficult for the regulator to accomplish the latter if fiat currency is not involved.Prominent blockchains and coins that rely on staking include Ethereum (ETH), BNB Chain (BNB), Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), and many others.ban Coinbase CEO Brian Armstrong Expresses Concern Over Rumors Of SEC Ban On Crypto Staking For Retail Customers Brian Armstrong, CEO of Coinbase, expressed concern about rumors that the U.S.Securities and Exchange Commission (SEC) may eliminate cryptocurrency staking for retail customers in the United States.Armstrong insisted that “staking is not a security” and that the trend allows users to “participate directly in running open crypto networks.” Coinbase CEO Vocalizes Worry Over US Stifling Crypto Staking and Innovation Coinbase CEO Brian Armstrong said he has heard rumors that the U.S.Securities and Exchange Commission (SEC) plans to eliminate cryptocurrency staking for retail customers in the U.S.Armstrong shared his views on Twitter and stated that he doesn’t believe the top securities regulator should ban cryptocurrency staking in the country.
“I hope that’s not the case,” Armstrong wrote, “as I believe it would be a terrible path for the U.S.if that were allowed to happen.” Sharing a “primer” on the subject written by Paradigm, Armstrong stressed that staking is not a security.“Staking is a really important innovation in crypto,” the Coinbase CEO said.“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.” Armstrong argued that new technologies need to be fostered, not stifled, in the U.S.and that it is important for the country to have clear rules for financial services and Web3 industries for national security reasons.“Regulation by enforcement doesn’t work,” Armstrong said.“It encourages companies to operate offshore, as happened with FTX.” Not everyone agreed with Armstrong, as some quickly criticized staking and decentralized finance (defi).
“It’s almost like defi and staking isn’t decentralized,” one person quipped in Armstrong’s Twitter thread.Others poked fun at SEC Chairman Gary Gensler with a picture that included a quote that said: “Guess it’s time for more protection.” Another individual tweeted, “Realistically, the Howey test is so broad that pretty much everything is a security.The real test is whether the SEC wants to/feels like it can regulate the thing.” Armstrong hopes that the industry will work together to establish clear rules and “sensible solutions” that protect consumers while also “preserving innovation and national security interests” in the country.Tags in this story ban, Brian Armstrong, ceo, clear rules, Coinbase, companies, Consumers, Criticism, Crypto, Cryptocurrency, Decentralized finance (Defi), Financial Services, fostered, ftx, Gary Gensler, Howey Test, increased security, Innovation, National Security, national security interests, new technologies, offshore, open crypto networks, primers, reduced carbon footprints, regulation by enforcement, Regulations, regulator, retail customers, rumors, Scalability, SEC, sec chairman, securities regulator, sensible solutions, staking, stifled, Twitter, views, Web3 industries What do you think about Brian Armstrong’s hearing rumors about the potential ban on cryptocurrency staking by the SEC? Share your thoughts in the comments below.
Jamie Redman Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida.Redman has been an active member of the cryptocurrency community since 2011.He has a passion for Bitcoin, open-source code, and decentralized applications.Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.
Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Cardano founder Charles Hoskinson calls Ethereum staking problematic Oluwapelumi Adejumo · 2 hours ago · 1 min read Hoskinson fears the US SEC might lump all staking protocols together “due to a fundamental misunderstanding about the actual facts of operation and design.” 1 min read Updated: February 9, 2023 at 11:24 am Cover art/illustration via CryptoSlate Ad Cardano (ADA) founder Charles Hoskinson tweeted on Feb.
9 that Ethereum’s (ETH) staking is problematic.According to Hoskinson, Ethereum’s staking looks “a lot like regulated products” because it involves “temporarily giving up your assets to someone else to … get a return.” He added that: “Locking funds, encouraging centralization, and poor protocol design hurts the whole industry.” Hoskinson was responding to Coinbase CEO Brian Armstrong’s statement that the SEC was planning to ban retail access to staking.Hoskinson implied that Cardano’s approach to staking “makes sense for a sustainable, proof of stake protocol that promotes control by the many instead of the few and creates a large decentralized environment.” The US Securities and Exchange Commission (SEC) has increased its regulatory scrutiny over the crypto industry, bringing several cases against crypto firms.The Commission’s chairman Gary Gensler previously said crypto exchanges offering staking services offer services similar to lending even if there are changes in the labeling.
The comment generated several heated responses from the crypto community over the Commission’s understanding of crypto staking.Hoskinson said: “All proof of stake protocols might get lumped together due to a fundamental misunderstanding about the actual facts of operation and design [of staking].” Meanwhile, this is not the first time Hoskinson criticized Ethereum’s staking.The Cardano founder previously described the blockchain network as the “Hotel California of crypto.” 2.6% Market Ethereum Liquid Staking Trend Continues To Swell; 5 Platforms Control 97% Of Market As of Feb.7, 2023, the value locked in 11 Ethereum-based liquid staking protocols has risen above $11 billion, with Lido, Coinbase, and Rocket Pool recording 4-10% gains over the past month.Lido holds more than 73% of the total value locked (TVL) out of the 6.87 million ether held by the 11 liquid staking platforms.More than 15% of the liquid staking TVL is being staked with Coinbase’s wrapped ether.Lido Leads the Pack With 73% of Total Value Locked in Ethereum Liquid Staking Industry Staking Ethereum has become a highly sought-after trend since its introduction on the network’s Beacon chain.
The Beacon chain contract has 16.47 million ether locked, worth $26 billion, that cannot be withdrawn until the upcoming March hard fork.A significant portion of this locked ether is held within liquid staking protocols, as 11 decentralized finance (defi) protocols hold 41% of the total, or 6.87 million ether.Liquid staking involves exchanging ether for tokenized versions of ether.This allows holders to earn rewards while still having a liquid form of the coin that they can sell at any time without relying on a custodian.
The staked ether is held within various protocols, and the platforms handle the exchange for minting and redemption processes.Out of the 41%, which is valued at more than $11 billion, Lido holds 73% of the total value locked (TVL).Lido’s TVL saw a 4.27% increase last month, and its value locked is around $8.18 billion today.Coinbase’s wrapped ether has 1,081,304 ethereum (ETH) locked into the platform and the TVL has gained 5.74% last month.The Coinbase wrapped ether platform TVL is 15.72% of the market share and the stash is worth $1.76 billion.The next two largest liquid staking platforms saw the biggest gains over the last month out of the top five projects.
Rocket Pool’s TVL climbed 10.71% in 30 days and during the same time frame, Frax Ether’s TVL increased by 76.73%.Rocket Pool has around 387,016 ETH locked and Frax Ether has a total of 87,134 ether.
Stakewise is the fifth-largest liquid staker, with 84,481 ether locked on Feb.7, 2023, valued at $136 million.
Frax Ether holds a 1.27% market share, while Stakewise holds 1.23% of the 6.87 million ether.The other six decentralized finance liquid staking platforms hold a mere 2.6% of the $11 billion in value, while the top five liquid stakers control 97.4%.
Tags in this story 2.6% Market, Beacon Chain, Coinbase, custodian, decentralized finance, Decentralized Finance Liquid Staking, ETH, ether, Ethereum, Ethereum (ETH), Ethereum staking, Exchange, Frax Ether, Gains, growth, Lido, Liquid form, Liquid Staking, March hard fork, Market Control, Market Share, minting, Platforms, Protocols, redemption, Rocket Pool, Stakewise, staking, Stash, Top Five Liquid Stakers, total value locked, trend, value locked, withdrawn What do you think about the continued growth of Ethereum Liquid Staking protocols? Share your thoughts in the comments section below.Jamie Redman Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida.Redman has been an active member of the cryptocurrency community since 2011.He has a passion for Bitcoin, open-source code, and decentralized applications.Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.
It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Top posts Italy4 hours ago LBank Secures Virtual Asset Provider Registration To Operate In Italy press release PRESS RELEASE.Global crypto exchange LBank has registered as a Virtual Asset Provider with Italian regulator Organismo degli…ban4 hours ago Coinbase CEO Brian Armstrong Expresses Concern Over Rumors Of SEC Ban On Crypto Staking For Retail Customers Brian Armstrong, CEO of Coinbase, expressed concern about rumors that the U.S.
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