- Coinbase CEO Brian Armstrong tweeted saying The SEC might ban crypto staking
- Armstrong nonetheless mentioned that crypto staking is a vital innovation in crypto.
- The revelation was met with criticism from Charles Hoskinson who mentioned 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 want to do away with crypto staking within the U.S. for retail clients. I hope that is not the case as I imagine it might be a horrible path for the U.S. if that was allowed to occur.
— Brian Armstrong (@brian_armstrong) February 8, 2023
In response to Armstrong, staking is a crucial innovation within the crypto house because it permits crypto customers to take part immediately in operating decentralized blockchain networks. In his follow-up tweets, he mentioned that crypto staking has introduced many constructive enhancements within the crypto trade together with rising safety and scalability and likewise serving to in lowering carbon footprints.
For these new to crypto staking, it’s when customers lock up their crypto property for a sure period of time to assist help sure features 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 International weighed in on the matter saying that “Ethereum staking is problematic.”
Hoskinson argues that giving up property briefly to another person in return for rewards resembles regulated merchandise. He mentioned:
“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 may get lumped collectively as a result of a basic misunderstanding in regards to the precise details of operation and design.”