SEC could scrap crypto staking, Coinbase CEO reveals

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  • Coinbase CEO Brian Armstrong Tweets That The SEC May Ban The Cryptocurrency
  • Armstrong, however, said that crypto staking is an essential innovation in crypto.
  • The revelation came with criticism from Charles Hoskinson, who said that Ethereum staking is problematic.

co-founder and CEO coinbase Brian Armstrong tweeted earlier today that he’s hearing rumors that the SEC intends to “get rid” of crypto in the US for retail customers.

According to Armstrong, staking is an important innovation in the crypto space as it allows crypto users to directly participate in running a decentralized blockchain network. In his follow-up tweets, he added that crypto staking has brought many positive improvements to the crypto industry, including increasing security and scalability, and also helping reduce carbon footprints.

For those new to crypto staking, this is when users stake their crypto assets for a set amount of time to help support certain functions of the blockchain, including governance and verifying transactions and, in turn, Some include getting staking rewards.

Disgusted by Armstrong’s revelation

While some hold the same views as Brian Armstrong, some have responded with memes and derision. Charles Hoskinson, founder of Input Output Global, reflected on the matter saying that “Ethereum Staking is problematic.

Hoskinson argues that temporarily giving assets to someone else in exchange for rewards resembles regulated products. They said:

“Slashing and Bond [are] not that good. Non-custodial liquid staking on the other hand is like those mining pools we’ve used for 13 years… It’s sad that a fundamental misunderstanding about the actual facts of operation and design could have caused all proof of stake protocols to come together .

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