Bitstamp, one of the oldest digital-asset exchanges, will discontinue staking services in the US amid a crackdown on the product by the Securities and Exchange Commission.
(Bloomberg) — Bitstamp, one of the oldest digital-asset exchanges, will discontinue staking services in the US amid a crackdown on the product by the Securities and Exchange Commission.
The decision was made in the light of “current regulatory dynamics” in the US, Bistamp’s national Chief Executive Officer Bobby Zagotta said in a statement. The move takes effect on Sept. 25, he added.
Staking involves earning rewards by pledging tokens to help run a blockchain and the SEC views some such products as unregistered securities.
In June, the agency in a lawsuit accused Coinbase Global Inc. of breaking its rules by offering staking services. Rival Kraken earlier stopped US staking products after saying it will pay $30 million to settle SEC allegations.
Coinbase, the largest US crypto platform, has said that the SEC’s lawsuit lacks merit. State regulators from California to New Jersey have also demanded that company halt its staking offering.
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