Coinbase CEO Armstrong Decries Rumors of Possible US SEC Ban on Crypto Staking

Coinbase's head Brian Armstrong escalated his war of words with the US Securities and Exchange Commission, warning he'd heard rumors the agency wants to 'get rid of' crypto staking by retail investors. Bloomberg: 'I hope that's not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen,' he tweeted on Wednesday, while arguing that the practice of staking is 'a really important innovation.' The SEC declined to comment on Armstrong's tweets. The agency has repeatedly said that most digital tokens are securities that should be subject to its rules. Chair Gary Gensler has previously indicated staking could fall under the regulator's purview. Armstrong argued that staking is not a security.

Staking involves earning rewards by locking up coins to help order transactions on various blockchains such as Ethereum. Coinbase, Kraken and other crypto exchanges have waded into staking products to diversify revenues. The firms let users stake coins, without needing specialist computer equipment nor having a minimum amount of 32 Ether, and take a cut of the rewards. Staking on Ethereum can earn yields of about 6%. Coinbase has flagged the progress of its staking services to shareholders.

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