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Just recently, several concerns were raised among the cryptocurrency communities pertaining to the staking services.
The entire cryptocurrency industry was concerned about what they were hearing about cryptocurrency staking and the US SEC.
Several rumors have turned up pertaining to the staking of cryptocurrencies and how the US Securities and Exchange Commission (SEC) wants to crack down on them.
Out of the entire crypto industry, it was the users based in the United States who were concerned about the US SEC’s action. They were alarmed that the US SEC would go against the crypto-staking services and platforms.
Brian Armstrong Addressed the Matter
The CEO of Coinbase took it upon himself to address the matter and put an end to the false claims involving staking and the US SEC.
Coinbase is the second-largest cryptocurrency exchange in the entire world in terms of trading volume. It has more than 40 million users, which means that the platform has adoption by the entire world.
This sets the status and the credibility of the crypto exchange to the highest level in the crypto industry.
Being the CEO of such a major entity in the crypto-verse, it goes without saying that Brian Armstrong is among the most influential personalities in the sector.
Therefore, the statements that he makes hold a lot of credibility and worth in the cryptocurrency industry. This is the reason why when he addressed the matter, there was peace in the entire crypto-verse involving staking.
On February 9, the Coinbase CEO took it to the Twitter platform where he addressed the rumors that were spread throughout the crypto industry.
According to the rumors, the US SEC is getting ready to crack down on cryptocurrency staking. Such rumors eventually cause a great decline in the assets that belong to the particular segment.
Indeed, the cryptocurrencies that were being used for staking purposes started to face declines in their values and demand.
However, Brian Armstrong defused the situation and cleared out any confusion pertaining to such claims.
US SEC Won’t Do That
According to Armstrong, the claims pertaining to the US SEC conducting a crackdown on crypto are nothing more than rumors.
He asked the cryptocurrency industry not to pay any attention to that. He especially asked the cryptocurrency community based in the United States to disregard such claims and continue with their staking activities.
He stated that it is highly unlikely for the US SEC to make such a move against the staking tokens in the cryptocurrency industry.
He clarified that the US SEC has been reassessing its position in the regulatory industry. It wants to understand if it has made the right decisions going against the major crypto firms or not.
This means that the regulator has realized what the crypto-blockchain industry has to offer to the US locals. Therefore, the US SEC may not resort to taking such drastic actions against the crypto industry.
He mentioned that if the US SEC crackdown against the staking services, it will end up adopting a terrible path. This would make the entire crypto-staking community unhappy in the United States.
Armstrong Praised Crypto Staking
While defusing the rumors, Armstrong even talked about the potential and the benefits that cryptocurrency staking has to offer.
He talked about the importance of cryptocurrency staking for the expansion and growth of the crypto industry.
Armstrong stated that the staking services in the cryptocurrency industry have offered increased security and scalability to the users.
In addition to the above, staking is also a major savior against carbon footprints. Staking is known for resulting in the reduction of carbon footprints and it also lets users run cryptocurrency networks.
He mentioned that the staking protocols are helping the regulators not putting them in trouble. Therefore, the US SEC will not take action against the staking platforms and cryptocurrencies.