Crypto industry fears a staking ban, as some turn to bitcoin: ‘It has always been on the safe side of regulation’

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Some crypto industry participants fear that a charge brought by the U.S. Securities and Exchange Commission against crypto exchange Kraken may lead to a ban...

Some crypto-industry participants are worried that a charge brought by the U.S. Securities and Exchange Commission against crypto exchange Kraken may lead to a ban on digital-asset staking.

On Thursday, the SEC charged Kraken with failing to register its staking program as securities. Kraken has ended its staking program in the U.S. and agreed to pay $30 million to settle the charges, without admitting or denying the allegations, according to a Thursday statement. Many major crypto exchanges, such as Binance and Coinbase COIN , offer staking services, where they provide custody of users’ cryptocurrencies and stake them. Some decentralized staking service providers, such as Lido Finance, allow users to safeguard their own cryptocurrencies while participating in staking.

However, if the regulators issue a blanket ban on staking, it could be “a huge hit” for proof-of-stake blockchains, depending on the decentralization level of these networks, especially on how many users are U.S.-based, Melpignano told MarketWatch in a call.

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Bajj pure fud you can do staking in decentralized wallets is just bad for US exchanges

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