Benzinga - Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong expressed concerns over hearing rumors about the U.S. Securities and Exchange Commission getting “rid” of cryptocurrency staking in the United States for retail customers.
What Happened: Armstrong said in a Twitter thread that he believes this would be a “terrible path for the U.S. if that was allowed to happen.”
1/ We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that's not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.— Brian Armstrong (@brian_armstrong) February 8, 2023
“Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints,” said the Coinbase co-founder.
Why It Matters: Armstrong said, “We need to make sure that new technologies are encouraged to grow in the U.S., and not stifled by lack of clear rules.”
The Coinbase top executive decried “regulation by enforcement” and said it led to the mushrooming of offshore companies such as Sam Bankman-Fried's FTX.
Armstrong's company faces an SEC probe over its staking programs and yield-generating products. The exchange facilitates trade in digital assets such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) and other tokens.
Price Action: On Wednesday, Coinbase shares closed 2.8% lower at $69.44 and dropped 0.3% in the after-hours trading, according to Benzinga Pro data.
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