Coinbase CEO Brian Armstrong expressed concern over rumors that the US Securities and Exchange Commission wants to ban staking.
A stake is defined as a client who commits their crypto assets to support the blockchain network, making available cryptocurrencies that use proof of stake protocol to process payments. Become a “validator” and get rewarded in the form of a refund.
“I hope this doesn’t happen because it would be a terrible track in the US if the agency allowed it,” the Coinbase president tweeted.
The SEC declined to comment on Armstrong’s tweets, and the agency confirmed that most digital tokens are securities that should be subject to its rules.
Staking services have gained momentum in recent months after Ethereum, the largest trading backbone in cryptocurrencies, switched to a so-called proof-of-stake method for ordering blockchain transactions last September.
