Bitstamp Stops Offering Ethereum Staking Services To US Users Starting September 25

Key Points:

• Bitstamp will cease Ethereum staking for U.S. users starting September 25 amid rising SEC scrutiny of staking’s regulatory status.
• The decision echoes industry trends as exchanges adapt to stricter regulations, as seen in recent actions against staking by the SEC.
• Users receive rewards until September 25; Bitstamp’s move showcases its commitment to compliance and trust in the face of evolving regulations.

According to Blockworks, Bitstamp, a long-standing cryptocurrency exchange, has announced its decision to discontinue Ethereum (ETH) staking services for its U.S. customers, effective September 25.

The move comes as regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) intensifies around staking offerings in the crypto industry.

Bitstamp’s CEO, Bobby Zagotta, emphasized the comprehensive evaluation of services in compliance with evolving regulatory landscapes. The cessation of staking services for U.S. customers is aligned with Bitstamp‘s commitment to navigating the intricate regulatory dynamics.

Until the termination date, September 25, 2023, users will continue to receive staking rewards. After this, all staked assets will be unstaked, and the rewards, along with the initial investment, will be added to users’ main Bitstamp account balances.

The company anticipates that this process might extend beyond a few days due to network conditions.

The agency’s heightened focus on staking services has been evident through legal actions against various industry players, including Coinbase and Binance.

The SEC has argued that certain staking arrangements could be classified as investment contracts under the Howey test and thus be considered securities subject to regulation.

Bitstamp’s decision aligns with a broader trend in the industry, with other exchanges like Kraken also discontinuing U.S. staking services after settling SEC allegations. This shift reflects the industry’s commitment to compliance and adapting to evolving regulatory paradigms.

While Bitstamp’s U.S. customers will no longer be able to engage in staking, the exchange’s core services remain unaffected.

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