Billionaire Coinbase CEO Sounds Alarm Over Rumoured SEC Ban on Crypto Staking for Retail Customers
Brian Armstrong - the brains behind Coinbase - hit back at rumours of an incoming US crypto staking ban.
Taking to twitter. The Coinbase CEO argued that staking is vital. Ensuring users can contribute to the running of decentralised networks while also boosting scalability and network security.
Armstrong also highlighted the importance of Proof of Stake technology for reducing the industry's carbon footprint.
In the past regulators have heavily criticised the carbon footprint of Proof of Work (PoW) 'mining' technology. Some nations including China used excessive energy consumption from PoW as the rationale behind their crypto bans.
The crypto industry in turn pinned their hopes on Proof of Stake as a greener alternative. With substantially reduced energy consumptions aiming to quell regulators attacks. In Q4 2022 there was $42bn staked in crypto, with $3bn staking rewards given.
Yet, it appears regulators have now changed from an environmental to a financial criticism. Alleging that staking technology is in effect the operation of an unlicensed security product.
Armstrong pointed out that lawmakers risk suffocating a young tech industry. As regulators fail to wrestle with the crypto industry, the lack of sensible and clear rules is stifling growth.
This the CEO argues is becoming an issue of national security. The floundering of dinosaur regulators in the US is pushing the industry players and by extension fintech and Web3 development overseas. He cited the spectacular collapse of FTX in the Bahamas as an obvious case.
With a powerful voice in the industry, Armstrong's tweets have caused quite a stir. This comes as Coinbase itself, and rival Kraken exchange have both ended up under probe by the SEC over unregulated securities
Read more on cryptonews.com
