Coinbase's Armstrong says staking restrictions would be 'terrible path for the U.S.'

Quick Take

  • Coinbase CEO Brian Armstrong said restricting crypto staking could lead the U.S. down a “terrible path.”
  • He was responding to what he said were rumors that the SEC wanted to ” get rid of crypto staking in the U.S. for retail customers.”

Coinbase CEO Brian Armstrong used a Twitter thread to warn about what he said would be a "terrible path" for the U.S. if it were to restrict crypto staking in the country.

"We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers," he wrote in a thread on Twitter, arguing that it was an important innovation in the space that fosters scalability, increased security and reduced carbon footprints. "Staking is not a security."

Securities and Exchange Commission Chair Gary Gensler raised eyebrows last year after Ethereum's proof-of-stake transition when he hinted that the commission could classify tokens in proof-of-stake networks as securities.


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Armstrong said Wednesday that it was important that companies are encouraged to grow in the U.S. and not be stifled by a lack of clear rules.

"It's a matter of national security that these capabilities be built out in the U.S.," he wrote. "Regulation by enforcement doesn’t work. It encourages companies to operate offshore, which is what happened with FTX."

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About Author

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.


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