In a recent turn of events, yet another crypto-staking service, Bitstamp, is set to cease operations in the US. Previously the world’s longest-standing digital asset exchange, has made public its intention to conclude Ether staking services in the United States in the coming time.
As per a report from Bloomberg, crypto exchange Bitstamp is planning to discontinue staking rewards for only US customers starting September 25. This move came in response to increased regulatory scrutiny of the staking product by the Securities and Exchange Commission (SEC).
It’s important to highlight that staking entails earning rewards through the pledge of tokens to support blockchain operation. The SEC considers certain products of this nature as unregistered securities.
Bobby Zagotta, who holds the positions of U.S. CEO and global chief commercial officer at Bitstamp, has reportedly confirmed that Bitstamp will cease its staking services in the United States starting from September 25, 2023. It’s worth noting that all other Bitstamp services will continue to operate without any interruption.
This resolution was prompted by recent occurrences where prominent crypto exchanges like Kraken and Coinbase faced penalties from the SEC over accusations of conducting unregistered securities offerings. In light of the SEC’s intensified regulatory scrutiny, Zagotta stated, “Considering current regulatory dynamics in the U.S., we’ve made the decision to discontinue staking for customers residing in the United States.”
Also Read: Bitstamp Halts Trading for Solana & Some Major Cryptos in US
