Could the Securities and Exchange Commission ban crypto staking in the United States?
Crypto-currencies are even less popular than usual in the United States, due to several cases that have followed one another in recent days. But the financial regulator could well prepare an even larger operation, if we are to believe this rumor.
The end of staking in the United States?
The mood was not very good in the last few days on the cryptocurrency market, with prices falling. The reason ? The activity of the American financial authorities, which took several decisions. One of them, particularly important, resulted in the ban on the company Paxos from issuing new BUSD tokens, the stablecoin of Binance, seventh largest crypto capitalization. And other actions could be decided.
That’s the fear of Coinbase founder Brian Armstrong, who echoed a rumor on Twitter that the Securities and Exchange Commission may simply ban staking in the United States in the future. As a reminder, this practice consists of locking cryptos so that they are used in the “proof of stake” mechanism, which allows transactions to be validated.
Kraken already sanctioned
This mechanism is interesting both for the owner of the cryptocurrencies, who receives rewards for his passive participation, but also for the cryptocurrency environment. As Brian Armstrong reminds us, proof of stake has a reduced carbon footprint that requires much lower energy consumption than “proof of work”, which has sparked debates on the polluting side of crypto-currencies.
While we are still only at the rumor stage at the moment, this announcement comes very close to the 30 million euro fine imposed by the SEC on Kraken for not having registered its staking program. . The exchange has since announced that it is suspending this service to US tax residents. Is the platform located in California preparing for new, more restrictive regulations?
Source : Brian Armstrong on Twitter
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