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Coinbase CEO Cautions Against SEC Crackdown on Crypto Staking

cryptoknowmics.com 09 February 2023 04:01, UTC

Coinbase CEO Brian Armstrong has raised concerns about rumors of the strict stance adopted by the SEC on crypto staking. Brian Armstrong took to Twitter to caution SEC against getting rid of crypto staking in the U.S. for retail customers. [embed]https://twitter.com/brian_armstrong/status/1623459203150131201?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1623459203150131201%7Ctwgr%5Eb131108ec59d587947e4962a08cbd93b746ff1a1%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptopotato.com%2Fcoinbase-ceo-concerned-about-sec-ambitions-to-crackdown-on-crypto-staking%2F[/embed]

Coinbase CEO Warns SEC Against Putting An End to Crypto Staking

While cautioning the SEC, Armstrong also highlighted some of the benefits of staking, adding that it brings many positive improvements to the industry. These include scalability, increased security, reduced carbon footprints, and enabling users to participate in running a crypto network. The Coinbase boss warned that the United States should be a place where new technologies and innovation are encouraged and not stifled by a lack of clear rules.

The Paradigm Report

Last year, Paradigm issued a report stating that proof-of-stake does not entail a “common enterprise” as detailed in the Howey Test that the SEC uses to determine what it considers a security. The SEC has hinted that ETH is security due to its staking mechanism, but then the premise could apply to all proof-of-stake tokens should it become legislation.

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