Key Points:Brian Armstrong claims that he has heard whispers from the U.S. SEC about a ban on ordinary investors participating in crypto staking.
September 2022 Congressional hearing that stake was “another indicator that under the Howey Test, the investing public anticipates benefits based upon teh workof others”.
Coinbase CEO Brian Armstrong claims that he has heard whispers from the U.S. Securities and Exchange Commission about a ban on ordinary investors participating in cryptocurrency staking. This is a revenue-generating strategy at heart of operating blockchains such as Ethereum.
He tweeted Wednesday, “I hope that’s the case because I believe it would be an awful path for the U.S. If that were to happen,”
Gary Gensler, chairman of the SEC, stated previously that cryptocurrencies that allow staking can be classified as securities under The Howey test. This despite the fact that ether was designated as a commodity under the SEC’s sister regulator the Commodity Futures Trading Commission. Armstrong’s suspicions may surprise many in the industry (CFTC). Staked, a non custodial staking provider, estimated that staked assets had a value of $42 billion in quarter four of 2022. This figure included an annualized staking incentive of $3 billion. This number did not only apply to retail investors.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: CoinbaseCoinbase CEOSECStaking Crypto