The US Securities and Exchange Commission (SEC) might be working on a new plan to ban crypto staking in the US for retail investors as the authorities seek new measures to prevent crashes similar to Celsius and BlockFi.
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In a Twitter thread, Coinbase CEO, Brian Armstrong, said the exchange was hearing "rumors" that the SEC wants to strike the market with another preventive measure. If these rumors are true, it would be a "terrible path" for the US, Armstrong highlighted.
"Staking is a really important innovation in crypto. 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," he said.
The Coinbase CEO emphasized that staking cannot be defined as a security and lawmakers need to make sure that new technologies are "encouraged to grow in the US, and not stifled by lack of clear rules."
In June 2022, European Central Bank President, Christine Lagarde, said that cryptocurrency staking and lending services should be regulated as innovations in these "unexplored and uncharted territories put consumers at risk." She also pointed out the popularity of staking and lending services is growing, while the lack of regulation is covering fraud.
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