- Coinbase CEO Brian Armstrong tweeted saying The SEC might ban crypto staking
- Armstrong nonetheless stated that crypto staking is a necessary innovation in crypto.
- The revelation was met with criticism from Charles Hoskinson who stated Ethereum staking is problematic.
The co-founder and CEO of Coinbase Brian Armstrong earlier immediately tweeted revealed that he’s listening to rumours that the SEC intends to “get rid” of crypto staking within the US for retail clients.
1/ We’re listening to rumors that the SEC wish to eliminate crypto staking within the U.S. for retail clients. I hope that is not the case as I imagine it will be a horrible path for the U.S. if that was allowed to occur.
— Brian Armstrong (@brian_armstrong) February 8, 2023
In keeping with Armstrong, staking is a vital innovation within the crypto house because it permits crypto customers to take part immediately in working decentralized blockchain networks. In his follow-up tweets, he stated that crypto staking has introduced many optimistic enhancements within the crypto trade together with growing safety and scalability and in addition serving to in decreasing carbon footprints.
For these new to crypto staking, it’s when customers lock up their crypto belongings for a sure period of time to assist assist sure capabilities of a blockchain together with governance and verifying transactions and get some staking rewards in return.
Armstrong’s revelation met with scorn
Whereas some maintain the identical views as Brian Armstrong, some responded with memes and derision. Charles Hoskinson, the founding father of Enter Output World weighed in on the matter saying that “Ethereum staking is problematic.”
Hoskinson argues that giving up belongings briefly to another person in return for rewards resembles regulated merchandise. He stated:
“Slashing and bonds [are] not so good. Non-custodial liquid staking however is just like the mining swimming pools we’ve used for 13 years… It’s unhappy that each one proof of stake protocols would possibly get lumped collectively attributable to a elementary misunderstanding concerning the precise info of operation and design.”