United States Securities and Exchange Commission (SEC) With the increasing rumors that he is planning to ban crypto staking services, cardanoof (ISLAND) founder Charles HoskinsonExperts, including , shared their views on the subject.
Cardano (ADA) CEO Says Ethereum Staking Is Troubled
Hoskinson is one of the leading protocols in the industry. Ethereumbelieves that it offers what he calls problematic staking.
The rumor was first raised by Coinbase CEO Brian Armstrong on the grounds that the staking rewards users receive when they lock their crypto are more like dividends paid to security token holders.
According to Hoskinson, the absolute inaccessibility of Ethereum tokens locked in staking smart contracts makes them look like regulated products.
Ethereum staking is problematic. Temporarily giving up your assets to someone else to have them get a return looks a lot like regulated products. Slashing and bonds not so good. Non-custodial liquid staking on the other hand is like the mining pools we’ve used for 13 years
— Charles Hoskinson (@IOHK_Charles) February 9, 2023
In a tweet in response to Armstrong’s first post, Hoskinson said:
Ethereum staking is problematic. Temporarily giving away your assets to someone else and making sure they get a return is a lot like regulated products.
Cuts and bonds aren’t that good. On the other hand, unsupervised liquid staking is similar to the mining pools we’ve been using for 13 years.”
While the news is still labeled as a rumor, industry participants are gearing up for an actual ban, especially by the market regulator.
According to Hoskinson, “fundamental misunderstanding about the realities of operation and design” will cause the SEC to categorize all staking products as one and the same, regardless of their differences.
He believes that designing a centralized system rather than a decentralized one, as most staking protocols do, will hurt the industry.
With the SEC, which has the power to regulate crypto pending a regulatory change in the US, the commission has issued multiple sanctions against several companies, including Ripple Labs Inc and LBRY.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!