Topic: Rumors that US SEC would like to ban crypto staking - page 3. (Read 420 times)

Better regulation with those companies would be better than offering to stake. There's already news about the SEC fining Kraken for $30 million for the operation of staking in the US and resulting in halting the staking of crypto. It all started with FTX. Damn.

Thats probably collateral damage when sec further investigate on this matter or should I say implement this bullshit plan. Its true and impossible, imagine the terrors and chaos that it might occur during the said rumors, cause projects will definitely get alarmed and oppose this thing. Unless they could ruled out a specific law for this, that includes a lot of subrules on which dos and dont are indicated which will be accepted by projects as they are gonna spend a lot of changes.

Kraken is probably the beginning of a ban on user (US users ) staking on a 3rd party partnership service, which is a big risk for centralized exchanges (especially when they have a full investigation report on it - ftx).  It's the SEC's purpose to get rid of crypto users and get to the bank.  Lol, we are completely free to do anything just when it comes to decentralized trading.  It's lucky for us to be in this ecosystem without being dependent and unaffected.  search and go there.

It's going to be their citizens only but they can't stop it for the other nations if there are citizens that like to proceed with such staking platforms.
They all have the means to stop and cease operations from platforms that do offer to stake. Maybe there's sort of competition thing that they're not mentioning since these staking platforms do offer more convenient rates than the typical banking interest that the people there might choose on.

Just saw that. So this isn't ban on staking really, it's ban on centralized third party services like exchanges used for staking?

While this will bring prices down, this could actually be good for decentralization. People would need to run their own nodes if staking as a service is not an option anymore.

Will this affect on staking services like Lido DAO as it isn't maintaining eth infrastructure either or are they too decentralised for control?

It's already happening man. SEC made Kraken end staking today in the US.

It's not that the SEC is stupid, its that Gensler is of the idiotic opinion that banning is protecting and so he seems to want to just randomly ban things in crypto for no other reason than he doesn't like crypto.

They can't ban staking or mining. But they can ban companies offering staking. And that is what they are now doing, starting with Kraken. They have no ability to stop individuals from staking, but they can use the legal power of the government to stop companies from doing whatever. This kinda highlights the whole reason why Bitcoin and decentralized services are so important in society - decentralized sovereign money and monetary services that can't be stopped. Anything with a company attached to it (most of Crypto - exchanges, altcoins, most "De"Fi services) can be taken down by the government. SEC is highlighting the populations need for Bitcoin with what they just did to Kraken today and are obviously going to follow it up by shutting down staking services on other exchanges.

https://www.sec.gov/news/press-release/2023-25

Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges.

FOR IMMEDIATE RELEASE
2023-25
Washington D.C., Feb. 9, 2023 —
The Securities and Exchange Commission today charged Payward Ventures, Inc. and Payward Trading Ltd., both commonly known as Kraken, with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent.

To settle the SEC’s charges, the two Kraken entities agreed to immediately cease offering or selling securities through crypto asset staking services or staking programs and pay $30 million in disgorgement, prejudgment interest, and civil penalties.

According to the SEC’s complaint, since 2019, Kraken has offered and sold its crypto asset “staking services” to the general public, whereby Kraken pools certain crypto assets transferred by investors and stakes them on behalf of those investors. Staking is a process in which investors lock up – or “stake” – their crypto tokens with a blockchain validator with the goal of being rewarded with new tokens when their staked crypto tokens become part of the process for validating data for the blockchain. When investors provide tokens to staking-as-a-service providers, they lose control of those tokens and take on risks associated with those platforms, with very little protection. The complaint alleges that Kraken touts that its staking investment program offers an easy-to-use platform and benefits that derive from Kraken’s efforts on behalf of investors, including Kraken’s strategies to obtain regular investment returns and payouts

“Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” said SEC Chair Gary Gensler. “Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.”

“In case after case, we’ve seen the consequences when individuals and businesses tout and offer crypto investments outside of the protections provided by the federal securities laws: investors lack the disclosures they deserve and are harmed when they don’t receive them,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Today, we take another step in protecting retail investors by shutting down this unregistered crypto staking program, through which Kraken not only offered investors outsized returns untethered to any economic realities, but also retained the right to pay them no returns at all. All the while, it provided them zero insight into, among other things, its financial condition and whether it even had the means of paying the marketed returns in the first place.”

In addition to ceasing the staking program and the monetary relief, Payward Ventures, Inc. and Payward Trading, Ltd, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of a final judgment, subject to court approval, that would permanently enjoin each of them from violating Section 5 of the Securities Act of 1933 and permanently enjoin them and any entity they control from, directly or indirectly, offering or selling securities through crypto asset staking services or staking programs.

Definitely not FUD.

Kraken just shut down staking services to US citizens today in a settlement with the SEC.
The SEC is clearly going after staking now with the goal of banning staking services through 3rd parties.

Of course anyone can still stake things on their own, SEC can't ban our internet use, but looks like staking through exchanges and centralized services will be coming to an end for US citizens in the near future, with Kraken being the first to go down.

This is gonna be bad for ETH staking because the way ETH staking works most people can't do it by themselves. Other altcoins don't really have this problem as most other PoS coins use validators rather than making every staker run their own staking node like ETH does.

I am skeptic as people in SEC aren't stupid, and ruling it as security makes zero sense. This would be even more moronic then US banning Proof of Work. At least with that consensus algorithm they have an enviromental argument. Also it would be as much of a losing battle that would have only losers. How would us profit from tens of thousands of their citizens losing their money over night because of a ban?

But wanting to do something is far from making laws about it. I am sure that they will withdraw their plans as soon as they look at them. Otherwise it makes me wonder what are they smoking over there.

First time I agree with Securities and Exchange Commission or SEC decision to ban cryptocurrency coins staking due crazy APY or reward increasing and few days later the coin staking price drop drastically. I think SEC have good planning about cryptocurrency staking almost the same with hype investment project.

They don't have enough money back up for paying staking holder except make price drop drastically and many investor losing their investment fund trough staking. I have bad experienced when staking AXS coin when price still above $100, before getting back my capital AXS have drop drastically right now.

This is not about who scams or which is a better consensus. This is the same SEC that promises to protect investors of FTX which investor's BTC is stucked. Banning Crypto staking is an attack to coinbase and other CEX that provides ETH staking.

SEC had been trying to kill every innovation in crypto including the lending program and then now the staking platforms.

Probably a way to regulate those projects and to prevent small investors from being scam, but this is just a rumor and might not be true at all.
Staking scams a lot of investors already, and there's a lot of projects that are still offering a too good to be true scheme which can end as another scam project. The market will react on this once SEC made their official statement with regards to this one, this can be good or bad depends on the FUD in the market sentiment.

What about those altcoins that do not delegate to the pool? For example DASH, DOT, KSM or many other coins can be stacked without third party involvement. So a ban on stacking could hurt a lot of projects. Or the opposite, people will start stacking specifically in such decentralised ecosystems because it's impossible to ban them.

Probably it's going to be per project basis here, they can't simply ban all staking programs, or maybe they are going to ban US citizens. Just like what they did to some exchanges before, unless they follow what they mandated that's why we have like Binance.US.

And most likely they will hide on the umbrella that they are doing this to protect US citizens

So there is a lot of smoke in here if ever this is true or not.

If this would turn out to be true, then this would definitely be a big blow for the crypto space i think. For me (and i think also for a lot of other people that are investing money into cryptocurrency space) cryptos are a chance of financial freedom. It would be a dream, if someday i would have enough funds staked in order to be able to get a significant return each months back in the form of interest. May it be over the native staking that some assets are offering, like Cosmos or Radix or Ethereum. Or through the staking on yield farms where you can stake single assets or LP's. So if that would no longer be possible it would really hurt the market.

Most of them are scams and people are always lured by them because of how the scammers offer them a high percentage return on their holdings. This is really good and I think the SEC has figured out the way scammers use this kind of feature as bait for their victims. On the other hand, the banks may be feeling like they were being ignored nowadays because of these kinds of offers from the altcoins developers. Either way, it's better to be safe than sorry and the SEC is right by doing this right now before they can take more money from their victims.

They won't ban all altcoins and what they will do is requiring altcoin projects that don't meet their criteria to pay forfeits before continuing their projects.

Altcoins are very flexible and they can switch, migrate from Proof of Work to Proof of Stake, Masternode, DeFi 2.0 and any more modern algorithms. In the USA. there is no clear guide on what organization is responsible to regulate cryptocurrency and cryptocurrency projects. SEC is one of related organizations at this moment.

The lawsuit between SEC and Ripple XRP is important for altcoins. Even I or you don't like Ripple, we should hope that Ripple will win this lawsuit or at least they will have a good agreement with SEC to close this deal.

Whats funny is he just said it on rumors. Damn of course if he posted like this, it be considered as fact already on the minds of the users. Some institution or even traders are gonna viewed that as possible down fall and setting some short orders already. This is what we called media powers which they wanted to spread. Im not sure if this news has been circulated before or used already but if it is. Then Coinbase are good at manipulation probably trying to buy at lower price for some of these major alts.

probably fud. worse is that it comes from coinbase CEO.

ETH Zhejiang update is fast approaching and because of this update, the validators in the beacon chain can finally withdraw their rewards and their ETH. once staking is banned, they can not get back to becoming a validator anymore. that's tragic for there are too many users and institutions staking ETH. ETH price will be dumped in this isn't a fud.

This is already a FUD, the way I see it, especially if not all projects are going to be affected. I mean maybe 90% of them are scams, but there could be solid projects that could be affected by this negative news, hence it might be considered as a FUD already.

And it could be one news that have been affecting the price as of late, overall, the market is down to almost 2% in the last 24 hours.

So this is not a good news for us.