Rumors that US SEC would like to ban crypto staking

[blockman]

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.

[DOH!]

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.

[cryptoaddictchie]

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.

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.

[crwth]

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.

[PIMPdev]

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.

[electronicash]

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

[posi]

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.

[cryptoaddictchie]

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.

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.

[hd49728]

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.

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.

[SUPERSAIAN]

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.

[Abiky]

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

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

[ItsCrafty]

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.

[Yogee]

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.

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

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.

[Moeda]

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

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.

[zaki12]

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.

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.

[ryzaadit]

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.

[eaLiTy]

~
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. 

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.

[GEMIN_M4]

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.

[Mr. Magkaisa]

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.

   -   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.

[dbshck]

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?

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.