Bitcoin (BTC) Retreats To $21K Amid Rumors Of SEC Attack On Staking
According to a Bloomberg report, the SEC was looking into Kraken, the world’s third-largest cryptocurrency exchange, for possibly violating securities laws by providing some products to Americans.
According to the article, the inquiry may be drawing to an end, with a possible settlement arriving within days. It is unclear which tokens or other items provoked the SEC investigation.
Clients can invest in about 185 different cryptocurrencies on the US-based exchange, as well as stake their holdings for rewards. Additionally, Bloomberg predicts any settlement would have broader ramifications for the crypto sector.
A settlement with the SEC could pressure other crypto firms to hash out deals with the regulator, which has repeatedly said most of the tokens being offered are securities that should be subject to the agency’s rules.
Says the report
Bitcoin is worth $21,860 at the time of writing, down more than 5% from its high the day after the report was published.
Source: Tradingview
Following FTX’s demise in November, SEC head Gary Gensler stated that his agency would be more active in enforcing crypto businesses that had not registered with the SEC.
Meanwhile, Brian Armstrong, the CEO of the US-based crypto exchange Coinbase, is opposing any prospective SEC crackdown on crypto staking.
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
According to Armstrong, staking is a significant advancement in cryptocurrency. It enables people to participate directly in the operation of open crypto networks. Staking improves the space in numerous ways, including scalability, increased security, and lower carbon footprints”
He further claims that the SEC should not consider staking security and that the federal body should implement crypto-friendly policies, or exchanges will leave the country.
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