Coinbase Global Inc 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.”
Armstrong called staking a “really important innovation in crypto” which allowed users to “participate directly in running open crypto networks.”
“Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints,” said the Coinbase co-founder.
See Also: 9 Best Coinbase Alternatives In 2023
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 BTC/USD and Ethereum ETH/USD 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.
Read Next: Bitcoin's 'Golden Cross' Confirmed — Will This Send Apex Crypto Rallying? Analysts Weigh In
Photo by TechCrunch on Flickr
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