Coinbase CEO Brian Armstrong Suggests SEC Could Ban Staking
• Coinbase CEO Brian Armstrong suggests that the U.S. Securities and Exchange Commission (SEC) could ban retail investors from engaging in cryptocurrency staking.
• The governance token for the liquid staking platform Lido surged on the rumor suggested by Armstong that the SEC might ban staking for retail customers.
• Binance is helping assemble a consortium of crypto companies with a view towards rebuilding trust in the industry and consulting on regulations.
Price Moves in Crypto Markets
The latest price moves in crypto markets, as of Feb. 9, 2023, were: CoinDesk Market Index (CMI) 1,092 (-28.1), Bitcoin (BTC) $22,708 (-412.8), Ethereum (ETH) $1,637 (-35.5), S&P 500 futures 4,158.25 (+27.8), FTSE 100 7,946.69 (+61.5), Treasury Yield 10 Years 3.65% (-0). BTC/ETH prices per CoinDesk Indices stood at 7 am ET (11 am UTC).
Brian Armstrong’s Comments
Coinbase CEO Brian Armstrong said he had heard rumors that the SEC would like to ban retail investors from engaging in cryptocurrency staking – income-generating technique at the core of running proof of stake blockchains including Ethereum – and expressed hope this was not true since it would be a “terrible path” for the US if allowed to happen.. The SEC declined to comment on these rumors.
Lido Token Surge After Rumor
In response to these comments made by Armstrong, the governance token for liquid staking platform Lido surged around 11%. LDO allows users to stake ether (ETH). Prior to this rumor it had already risen 8%.
Binance’s Response
Binance has responded by helping assemble a consortium of crypto companies with a view towards rebuilding trust in the industry and is taking an active role in consulting on regulations with many other players within this space having already signed up to join them..