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

That's terrible news. I'm not surprised to read about that, especially when the US has been treating crypto with an "iron fist". Too much restrictions will force crypto businesses to close their doors within the country. That means less tax revenue for the US government. It seems the US is doing this to prevent the US Dollar from losing strength in the mainsteam world. After all, it doesn't want the USD being replaced by another currency as the world's reserve currency. The US will eventually lose as the de-dollarization process has already begun. Countries are adopting alternative currencies at a fast pace (like Bitcoin), so it should only be a matter of time before the USD becomes history.

The SEC might've gone against centralized crypto staking, but that doesn't mean it won't continue to escalate. They might go after decentralized staking platforms if they deem PoS to be a security. I can see how ETH would face further opposition down the road from the US government. Maybe this would be Europe's opportunity to become the next crypto/Blockchain hub? Just my opinion

Well they are stopping the staking due to improper operations that are followed by the centralized exchangers. I also heard that they are having such issues because of what happened last year with the FTX issues and other small to big exchanges. The problem in staking is, we literally give away our money in the hands of an exchanger for specific period. So for example if I am staking for 1 year period of time then that is officially their money and they can do whatever the hell they want with it. Over the period of time big company CEO's and owners are using these reserved funds to expand their operations and also use it for personal purposes and most of the entries are missing from the accounting books. This threatens the "savings" of an individual who is staking the money. This is SEC's one of the best decision ever. I think all the operations should move towards PoW and have real mining firing up the way coins work.

Seems not rumor but have been fact about SEC investigating and try to banned some cryptocurrency staking coins, this time I agree with SEC investigated and their decision to banned with cryptocurrency staking. There are many unacceptable staking coins by giving higher APY reward but bad impact later after staking running price dropped drastically.

I don't know when SEC will adopt this rule and start investigating or banned several cryptocurrency staking coins and restrict access with their country area with coins staking potential become scam later.

https://www.bloomberg.com/news/articles/2023-02-17/binance-holdings-explores-retreat-from-the-us-as-crypto-crackdown-escalates
https://finance.yahoo.com/news/binance-considers-pulling-back-us-153902920.html?
Binance Considers Pulling Back From US Partners as Crypto Crackdown Escalates

"The company, which operates the world’s largest crypto exchange, is weighing the retreat after its relationships with a key banking partner and stablecoin issuer ran into trouble amid intense scrutiny from authorities, according to a person familiar with the issue. Binance has been probed by the Securities and Exchange Commission, Commodity Futures Trading Commission, Justice Department and the Internal Revenue Service.

Binance Holdings is looking at whether to sever ties with intermediary firms such as banks and services firms and is reassessing venture-capital investments in the US, according to the person, who asked not to be identified discussing details that had not yet been made public. It will consider de-listing tokens from any US-based projects, including Circle’s stablecoin USD Coin, the person said."

____
UPD
https://twitter.com/cz_binance/status/1626617772019965952
CZ 🔶 Binance
4. False.

The US government will ban centralized staking platforms for now. But it could decide to go after decentralized staking if it wants to. All it has to do is go after the developers of the original project to hold them accountable for their actions. Of course, it's not as easy as it sounds. If developers are anonymous, then it will be impossible for them to meet with the governments' demands. It's all a "cat and mouse" game.

I've seen the SEC taking a hard approach against crypto lately, so don't expect crypto businesses to thrive in the US anytime soon. The more the US treats crypto with an "iron fist", the more businesses will flock to other countries. This will be a huge loss for the US in the long run. Who knows if the EU takes the reigns as the world's leading crypto hub? Just my opinion

Nope, as it isn't ban on staking, it's banning cex staking services (for U.S. clients for now). People can run nodes by them as they wish. But CEX:es promising to give interest to hodl money locked in there is going to be a service of the past. At least for regulated exchanges. I think that kraken was just an example. We will hear more about this when we get more details but trying ban POS would be just moronic move from them that would be laughed out from in any court.

They will begin by targetting every centralized exchange that provides staking services to US-based customers. Then, they will escalate to decentralized staking protocols by imposing a fine to the original developers of the project. That is if they're able to successfully identify such developers. Just because it's "decentralized", doesn't mean it's immune from government interference. Only a combination of decentralized and censorship-resistant techniques would render governments' efforts worthless.

I'm afraid there will be more pain ahead for crypto-related businesses in the US. If regulatory pressure continues, there will be an exodus of US-based crypto companies to other regions of the world. Maybe it's time for the UK or El Salvador to become the next crypto hub for businesses to blossom? I wouldn't worry much about the SEC, as long as crypto/Blockchain tech remains decentralized and censorship-resistant. Just my opinion

It seems to me that in the case of Paxos this is specially done to hurt Binance because it is Binance that issues BUSD. By the way I heard it was not an SEC initiative but a complaint from Coinbase. So maybe this is the American answer for what CZ did with FTX. Maybe now some people want to attack Binance and are looking for weaknesses.

Yeah currently just the centralized service. Not sure why, I guess they just want to hit crypto. First Kraken, then Paxos. We might see more firms getting sued.

There's a video of Gary Gensler interview with Andrew Ross Sorkin a few days ago. In the interview he said:
I mean obviously, this is not the case. If registering is as easy as filling a form, Kraken would rather do that than paying millions in fines and closing down their staking service.

It was Kraken, fined in 30$ million dollars. Probably they won't shut down, rather they will be just unavailable for US citizens. I fear the impacts on crypto market are going to be negative with this SEC measure against crypto services, because US market is a very wealthy and impacting one for crypto investments. Since they can't stake anymore, I believe that money could leave crypto industry, pushing prices in general down.

So it is not the Proof of stake that the US SEC that are banning but rather a feature of staking on centralized exchanges.  I wonder what trigger the SEC to restrict centralized exchanges of implementing staking program?  Did they see the staking program as a Ponzi Scheme that will give a devastating blow to late comers?

Despite the debate about whether the stacking ban news is  FUD or not, it brought something to my mind, which is the ban of stacking would encourage projects to return to the POW consensus, and that would waste the efforts spended to reduce the enviromental effects of crypto currencies. In my opinion, a complete ban on stacking won't happen and can't happen, because it terminates the development of the whole crypto industry.

I think this wasn't just a simple FUD but I read somewhere that some platforms are already being fined by the SEC only because they offer staking along with the other service that they offered. I think if they can't pay they will be forced to shut down and if ever they pay they can continue but with no more staking feature.

I don't think SEC does this to disrupt the growing price of Bitcoin but I believe they do such thing because they are already sick and tired of seeing those staking platforms or projects who promised to offer a huge APY/APR when most of them are just scams. ETH on the other hand is not included about this matter.

The market is speculative and often there needs something that could make the market move upwards and downturn. The market had experienced a forward push from the price around $17k and now stabilizing around $22k. By the time more things happen, as the market tend to move sideways. What is being circulated is kind of FUD that could drag the market downwards and make way for Whales to invest big. This is the common practice and now people doesn't let it happen as they've well understood the market.

Staking is already part of the Cryptocurrency industry its just some scam pools are making them bad there's a certain risk attached to it, but between banks and Staking interest I'll go for Staking interest already made a profit from the right pool I stake my Coins I just can't imagine Staking gone from Cryptocurrency ecosystem when Ethereum the number two coin in the market is now in Staking, there could be disruption if they will do that, I don't think it will gain support and many investors and supporters of staking will oppose this.
 

Well, CEX is regulated and should follow some rules and regulations, staking on CEX exchange is not the same as "staking on-chain", at least I think it's like that. Rules and regulations, each country have some stupid ones... But whatever it is, I am sure that some (if not a lot) US citizens will find a way to continue with staking on some CEX-es like they find a way to gamble in crypto casinos that don't accept players from the US.


I agree with you... this situation is about Kraken and its service, it's not about "staking" in general. But people like to create drama and FUD, sensational headlines get all the attention.

A normal whale price manipulation, they are hoping for another drop so they can still buy cheaper coins well they succeeded on this but its good to see Bitcoin is still doing great on its current price. Banning staking have pros and cons, but without any official statement from SEC you can consider this as a FUD and of course never believe on this or else you will panic as well. The market is getting better, expect more FUD like this since many wants to manipulate the price, either you can ride with them or you’ll take the safe side.

Another FUD was brought to the market. No wonder, after all this growth, now you need a reason to drop the price. I'm sure there will be no ban on staking. Ethereum just moved to PoS and is now, for the most part, controlled by American companies. Banning staking means banning all Ethereum. No one will take that step, it's like trying to ban bitcoin mining. This is another speculation designed to temporarily destabilize the crypto market.

Agreed, most dexes will definitely comply with regulators and blacklist wallets if they are told to. And it's not only US that's going to be strict. Anyone who wants to do business with US want to comply with their set of rules. We have been slowly moving away from the golden era of pseudonymity and soon there's no such thing as anonymity when it comes to cash. We should enjoy it while we can.

And for some reason people see US as the regulation leader, while 200+ jurisdictions are obeying FATF recommendations. And may i point out that US didn't build FATF.

Another rumor that would jus faze out very soon, if I get a penny for everytime a rumor about US or some big nations of the world plan to ban Crypto-currency or any affiliate I think I would be a millionaire by now.

I don’t think they have any grounds against staking and I see no security concerns on it, I would rather see it as  system of making sure a transaction is carried out. Besides not all Crypto-currency holders stake. I actually don’t do that.

I think it is for crypto staking on cexes and not dexes. So you instance there and stake on the dex

I don't think DEXs will be safe from the SEC's "hands", especially when most of them aren't as decentralized as they claim to be. Nowadays, it's easy to take down a DEX by censoring the domain or going after the developers of the project. The SEC might decide to fine the developers of a DEX if it deems its stakable coins as a security. You really can't avoid the government, unless you make everything truly decentralized and censorship-resistant. With the SEC penalizing Kraken for providing staking services to US-based customers, the crypto industry will be set towards a dark future (at least within the US). I'd imagine other exchanges like Coinbase and Binance being fined by the SEC later on.

The US is being too strict against crypto/Blockchain tech, and that's going to cost it dearly in the long run. New crypto-related businesses and even existing ones will close their doors to US-based customers because of tight regulations. Countries in the EU have a much softer stance towards crypto/Blockchain tech (AFAIK) so it's likely innovation will blossom there. Unless US government officials rethink their way towards regulating crypto, the industry won't be going anywhere soon. Just my thoughts

Yes, I agree! Kraken and Coinbase are holding a combined 33% of all tokens staked.  The SEC has shown that they will continue to tighten regulations on centralized exchanges (after FTX ends), they have reason to do so.  I believe it would be a strategic mistake to let momentum pass without a representative value that accurately reflects the shifting structure of the market.  That is also the reason why LDO, RPL, FXS are tightening short-term uptrend.  If the SEC continues to act, Once again decentralization is the way market demand goes.

Not all PoS coins work in that way, for example, Cardano ada staking. Staking Ada your ada never leaves your wallet so if a pool operator did behave maliciously or gets hacked your ada always remain safe within your wallet. I agree PoS can pose a risk to funds but this is entirely dependant on many other factors.

Yeah for now it's just a ban on centralized staking, like Kraken and Coinbase did. It doesn't affect liquid staking service like Lido and solo staking for now, but who knows. It's unlikely but the SEC might be going for them too in the future.

In fact, the market is taking this as a good news for liquid staking tokens (e.g. LDO, RPL). This news, along with the upcoming Shanghai update, was the catalyst for the brief pump a few days ago although most of the upside has been retraced now.

   -   No it not, as far as I know U.S will implement that to ban crypto staking. This doesn't sit well with the staking-loving crypto community, to be honest. And it may also be in favor of others, but ETH staking is not included in the U.S. ban as far as I know.

Then that is only applicable to the U.S. not to all countries around the world. And I think the US government wants to handle cryptocurrencies towards regulations.

Finally, SEC wants to do something for crypto, after all the accusation that they always intervene after the mess is done, honestly, staking on centralized exchanges are not safe and I am somehow happy about this move. The only place to stake without any issue now is decentralized platforms or exchanges, now, maybe people will start diverting their attention to Dex exchanges.

Kraken is slapped with a huge fine of $30 million by SEC because they failed to register the program, more exchanges will be under the same situation and will attract huge fines from the SEC. May be these sort of tightening the rules regarding staking took off as a rumor about SEC banning cryptocurrency staking, but the fact remains that they can ban them anytime and hence POW is the only workable solution for a decentralized currency.

I think it's just a rumor and not gonna happen.

Speaking about "SEC" did anyone of you are seeing good work from SEC? especially to created an health investment ecosystem, let's see from a simple things like "SCAM". Even with this easy work they should handle about "SCAM" on their country.

They're still not chasing the one who are really make a scam, example like "INFLUNCER" who created a project scam. It's need to be viral first, then they're taking some action on that.

Of course, the SEC generates the most fud. Those people are all playing the market, there has to be some FUD because prices have been going up for a while so they need it to come down again so they can start the pump and dump again. Everything is manipulated and controlled.

I also got information about this, I think this is valid information, considering the source of the information from the exchange notification. But we do not understand what has been the target of the SEC. Almost every year there is always a lawsuit filed by the SEC. What they do does not save crypto users, but makes crypto users always experience losses. We know about the problems that happened with FTX before, a lot of people trapped assets in it. And now the SEC is back to investigating the Kraken exchange, specifically regarding staking. Maybe someone on this forum can explain this.

Coinbase also has staking but they seems to be fine so it's not a blanket ban. There are certain SEC requirements that these centralized exchanges need to meet before they could offer their staking service. SEC already mentioned getting some permit for security or safeguard and then there's full disclosure. Kraken must have failed to comply.

sec has fined Kraken (one the top centralize exchange) for providing staking system which was against the rule of SEC. This news spread everywhere and Binance, coinbase and many exchanges now feeling fear that SEC next target may be these exchanges. This is very bad fir crypto and we have seen dump in crypto after this news.
I think Dex will be save there because This js totally decentralized system and Sec has no power it while Cex exchange should work under authority rules.

It's not a rumor anymore. Kraken just got its staking service "shut down" by the SEC. More info on that here: https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/

I'd imagine the SEC would require centralized exchanges operating in the US some license to be able to provide staking services to its customers. After all, staking is similar to getting paid dividends in the stocks world. These actions from another US government agency, tells us that the country is too restrictive against crypto/Blockchain tech. Too much regulation, drives crypto businesses away from the US. Expect to see more crypto exchanges closing their doors to US customers thanks to the government. They've banned a Bitcoin mixer, they've sanctioned a decentralized mixer built on ETH (Tornado.Cash), and now they're going after exchanges providing staking services. I wonder what will the US government come up with next? Just my opinion

The timing of the spread of this FUD is again unusual. As usual, the market moves in this way, one step forward, one step back, or the number of these steps changes. Staking has a very important function, the implementation of this ban for existing coins does not seem consistent, even the rumor that it remains only a rumor was enough to suppress the price, as can be seen here.

SEC does not ban all staking in cryptocurrency projects and on cryptocurrency exchanges. If it is staking on exchanges, SEC said it belongs to a type of investment contract between users and cryptocurrency exchange.

I think they will try to launch more laws and regulations about that but this attack on Kraken is unfair for the exchange. Before this event, SEC has never announced and given any submission form for staking on cryptocurrency exchange.

They said Kraken did not submit this activities legally but from their side, SEC did not have any detailed guide about that.

Definitely not. But probably they could do that to some exchange offering staking in the US. Sec is really pain in the ass to exploit different ways on how to ban something out of crypto. Its not an exaggeration but they are the one always putting up some lousy reason why the market keeps dipping. Now you can see the effect of this news on the total market ratings now.

As far as I know, the SEC fined Kraken and forced the exchange to stop offering staking services, but they only targeted kraken and not all other exchanges. Coinbase continues to offer staking services to customers and is unaffected by news of kraken. It's hard to understand what's going on, but I don't think the SEC will have the power to ban all exchanges, they can only do so in the US if they want to ban it. This could be the news that drives bitcoin down today.

it doesn't sound fud anymore since the news came out just late yesterday that Kraken was fined by SEC to pay $30M for unregistered crypto ‘staking’ product. It's not just one article site telling us this news.

it's a wonder though that it's just Kraken that is attacked by SEC. i suppose Jessie and Brain had been in talks about this before Brain posted that rumor on twitter. he must have been laughing that SEC had not aimed at him yet or Gensler is afraid that coinbase will fight back.

https://www.coindesk.com/policy/2023/02/09/us-securities-and-exchange-commission-sues-kraken-over-crypto-staking-services/
https://cointelegraph.com/news/kraken-reaches-30m-settlement-with-sec-over-staking

Well, as we can see this wasn't a rumor. TBH I think that's good, most people don't know how dangerous stacking on exchanges is. It's gonna be healthy for the market in the future.

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.

Well, at least I can agree with them about this. I think most people don't realize how this stacking actually works and how risky it is. I think it's kinda suspicious when you can earn 20% by just stacking, or even more.

Im not saying Im agreed. But not all staking pools were scam. Maybe I am bias since I had a lot of staking tokens that has been resting on a non custodial approach. Yes it may fall off due to dividend similarities however, its a necessary for some nodes to have stake to run the ecosystem. If they were to ban this, most centralized exchange offerinf this might suffer. Though Id really think this is just a big fud over a part of cryptocurrency utility called staking.

I agree with US SEC to ban crypto staking because it's a complete scam because it work similar like banking interest account, we're stake our token in untrusted centralized pool and it either get hacked or the pool's owner stole everyone tokens. But at the same time, bank should get banned too since they're offer tiny interest that will not able to beat inflation rate. So it's like a double standard, but SEC isn't entirely wrong here.

Ive just saw this tweet from Brian of Coinbase and its a big fud or a terrible rumor for altcoins. SEC wanted to crucify crypto staking in the US does considering the staking method as security. Of course this is debatable but some investor would feel bad for this news if ever they push through with this path. What can you say about this?

Source:
https://twitter.com/brian_armstrong/status/1623459203150131201?t=Tga5cATKNVjhBk7rMgCJyw&s=19