Coinbase CEO Mentions “Rumors” That The SEC May Forbid Retail Customers From Staking Crypto
Key Points:
- Brian Armstrong claims to have received whispers that the U.S. SEC wants to prohibit ordinary investors from participating in crypto staking.
- Congressional hearing in September 2022 that staking was “another indicia that under the Howey test, the investing public is anticipating benefits based on teh work of others“.
Brian Armstrong, CEO of Coinbase, claims to have received whispers that the U.S. Securities and Exchange Commission wants to prohibit ordinary investors from participating in cryptocurrency staking, the revenue-generating strategy at the heart of operating blockchains like Ethereum.
“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 Wednesday.
While Gary Gensler, the chairman of the SEC, previously stated that cryptocurrencies that allow staking could be classified as securities under the Howey test, despite the fact that ether has been designated as a commodity by the SEC’s sister regulator, the Commodity Futures Trading Commission, Armstrong’s suspicions may come as a surprise to many in the industry (CFTC).
Gensler told reporters after a Congressional hearing in September 2022 that staking was “another indicia that under the Howey test, the investing public is anticipating benefits based on teh work of others,” while he wasn’t specifically referring to any token in particular.
A substantial sum of money is risked. A research from Staked, a non-custodial staking service provider, estimates that the value of staked assets was around $42 billion in the fourth quarter of 2022, with annualized staking incentives 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/coincu
Website: coincu.com
Annie
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Coinbase CEO Mentions “Rumors” That The SEC May Forbid Retail Customers From Staking Crypto
Key Points:
- Brian Armstrong claims to have received whispers that the U.S. SEC wants to prohibit ordinary investors from participating in crypto staking.
- Congressional hearing in September 2022 that staking was “another indicia that under the Howey test, the investing public is anticipating benefits based on teh work of others“.
Brian Armstrong, CEO of Coinbase, claims to have received whispers that the U.S. Securities and Exchange Commission wants to prohibit ordinary investors from participating in cryptocurrency staking, the revenue-generating strategy at the heart of operating blockchains like Ethereum.
“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 Wednesday.
While Gary Gensler, the chairman of the SEC, previously stated that cryptocurrencies that allow staking could be classified as securities under the Howey test, despite the fact that ether has been designated as a commodity by the SEC’s sister regulator, the Commodity Futures Trading Commission, Armstrong’s suspicions may come as a surprise to many in the industry (CFTC).
Gensler told reporters after a Congressional hearing in September 2022 that staking was “another indicia that under the Howey test, the investing public is anticipating benefits based on teh work of others,” while he wasn’t specifically referring to any token in particular.
A substantial sum of money is risked. A research from Staked, a non-custodial staking service provider, estimates that the value of staked assets was around $42 billion in the fourth quarter of 2022, with annualized staking incentives 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/coincu
Website: coincu.com
Annie
Coincu News
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