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.
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."
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.