The Chief Executive Officer of Coinbase has expressed his concern after rumours of the SEC banning crypto staking for US retail customers emerged.
Coinbase’s CEO Brian Armstrong is concerned that the United States Securities and Exchange Commission may prohibit cryptocurrency staking for United States-based retail customers. He emphasized that staking does not constitute a security and that, through staking, users are allowed to take part in functioning open cryptocurrency networks.
Armstrong declared that he heard rumors of the recent SEC plans and he took to Twitter to state his views. He shared his disbelief in the SEC actually banning crypto staking. If such a thing should happen, the Coinbase executive believes that the US would take a ‘terrible path’.
According to him, staking is one of the most important crypto innovations because it enables users to directly take part in crypto networks. Through staking, the crypto space benefits from reduced carbon footprints, scalability, and better security, he states.
The CEO of Coinbase argued that the US should encourage new tech and not smother it. He also said that the US needs to have clear regulations for Web3 and financial services in regards to national security. If rules are enforced, then this makes companies run their operations offshore, as it was the case for FTX, Armstrong declared.
