First Mover Americas: Coinbase CEO Brian Armstrong Suggests SEC Could Ban Staking
TL;DR Coinbase CEO Brian Armstrong raised concerns that the U.S. Securities and Exchange Commission (SEC) may ban retail investors from engaging in cryptocurrency staking, sending the Lido governance token (LDO) up 8.4%. Meanwhile, Binance is forming a consortium of crypto companies to rebuild trust in the industry, and Robinhood’s Crypto revenue declined 24% to $39 million in Q4.
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Coinbase CEO Brian Armstrong says he's heard rumors the U.S. Securities and Exchange Commission (SEC) would like to ban retail investors from engaging in cryptocurrency staking, the income-generating technique at the core of running proof of stake blockchains including Ethereum. "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," he tweeted Wednesday. The SEC declined to comment.
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. The Lido protocol, governed by the LDO token (LDO), allows for the staking of ether (ETH). LDO surged around 11% in the immediate aftermath of the comments, and is up 8.4% in the past 24 hours.
Binance is helping assemble a consortium of crypto companies with a view towards rebuilding trust in the industry and is taking on an active role in consulting on regulations, according to a person with knowledge of the plans. A number of companies have already signed up to come on board. They span the crypto industry, including individual projects, exchanges and blockchain analytics firms, the person said, without naming any of the firms involved. Binance declined to comment.