SEC Said to be Considering Retail Staking Ban

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  • The SEC is considering banning staking for retail users
  • Coinbase CEO Brian Armstrong said he had heard “rumors” of an imminent ban
  • Lawyer Jake Chervinksy said he was hearing the same

The Securities and Exchange Commission (SEC) is considering banning staking for retail users, according to several respected members of the cryptocurrency space. Coinbase CEO Brian Armstrong and crypto lawyer Jake Chervinksy are among those who have revealed that sources have informed them of the SEC’s plans, which will be a major blow to the stakers that have contributed over 16.5 million ETH to the Ethereum 2.0 staking contract.

“Terrible Path” for U.S., Says Armstrong

Armstrong was the first to post about the news last night, saying it would be a “terrible path for the U.S.” if it were to go ahead:

Armstrong pointed to various enhancements that staking brings, including the encouragement of more environmentally friendly blockchains as well as increased scalability and security within blockchains themselves, while he also claimed that it was a “matter of national security” that such capabilities are “built out in the U.S.”

Chervinsky added that he had heard the same rumors, but advised caution that this is exactly what they are until proven otherwise. Chervinsky, who had a prominent role in the battle against the Infrastructure Bill in 2021, echoed Armstrong’s thoughts that banning staking for retail investors would be “an extreme error in US policy”. However, Chervinsky offered reality check: