Coinbase CEO and co-founder, Brian Armstrong, warns that a ban on retail cryptocurrency staking in the United States would result in an increase in the number of companies deciding to move to another country.
In a Twitter thread posted on February 9th, Armstrong expressed his concern over rumors that the US Securities and Exchange Commission would like to ban cryptocurrency staking for retail customers. The Coinbase co-founder believes that this measure would be a bad decision for the US, as staking is an important innovation in the field of cryptocurrencies. However, Armstrong did not provide any information on the source of the rumors.
Staking is a crucial innovation for cryptocurrencies, as it allows users to directly engage in the management of open cryptocurrency networks. Additionally, staking offers many improvements to the space, including scalability, increased security, and a lower carbon footprint.
Armstrong referred to a blog post from October 5 by cryptocurrency investment firm Paradigm, which argued that Ethereum’s transition to proof-of-stake and subsequent “staking” model does not make it a valuable asset.
Staking Rewards indicates that the top four cryptocurrencies with the highest staked market value represent over 55 billion dollars in staked assets. This suggests that a nationwide ban would be a major blow to the cryptocurrency industry in the country, which has already experienced the departure of cryptocurrency-related companies.