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Regulating crypto staking would be a “terrible path” for retail traders says Coinbase CEO Brian Armstrong

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A U.S. Securities and Exchange Commission ban on crypto staking would be a “terrible path” for the industry, Brian Armstrong, chief executive and co-founder of crypto exchange Coinbase
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-10.84%
,
believes.

In a series of Tweets on Wednesday night, Armstrong suggested that he’d been hearing rumors that regulators would like to get rid of crypto staking, which is a way for crypto holders to earn passive income by directly running open crypto networks. Staking lets users earn cryptocurrency as a reward for using existing holdings to verify the accuracy of transactions on an underlying blockchain network.

“We need to make sure that new technologies are encouraged to grow in the US, and not stifled by lack of clear rules,” said Armstrong. “It’s a matter of national security that these capabilities be built out in the U.S.”

Armstrong argues that “regulation by enforcement doesn’t work,” and it’s what encouraged FTX, the crypto exchange that filed for bankruptcy in November, to operate offshore. FTX operated in the Bahamas.

The SEC has been cracking down on crypto companies recently, with an open investigation into Coinbase Global, and a new investigation into Kraken, a crypto exchange that allows customers to trade Bitcoin
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-2.11%
,
Ethereum
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-4.43%
,
and other cryptocurrencies, over unregistered securities. In January, it also hit Genesis and Gemini, two popular crypto exchanges, with charges related to unregistered securities.

Here’s what we do – and do not – know about the future regulation in the United States.



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Jake

Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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