What Will Happen If The SEC Ends Staking? Altcoin Representative Reply

Cryptocurrency One of the people behind Lido Finance, the largest DeFi app for staking transactions, warned that service providers like Lido are facing new consequences following the US Securities and Exchange Commission’s (SEC) crackdown on the industry.

Lido Finance (LDO) Representative Predicts SEC’s Practices Will Be Beneficial To Them

Jacob Blish, business development manager of the decentralized autonomous organization, also known as DAO, which manages Lido Finance, said:

“Will this affect Lido, what are your thoughts on this?” I am getting more and more questions. I personally think this will have a clear benefit for on-chain permisionless liquid staking or staking providers, but it really depends on what the final decision is.”

According to data from blockchain data firm Nansen, Lido Finance has staked more than 4.8 million Ethereums worth about $7.2 billion on the platform. On Thursday, Kraken reached a settlement with the SEC over allegations that the exchange’s staking service was an illegal sale of securities.

DeFi applications allow people to trade, lend and borrow anonymously without intermediaries and often using automated protocols. Many in the DeFi community argue that this autonomous feature pushes apps out of regulators’ rules, as no individual directly benefits.

Blish added that if US regulators eventually conclude that no US individual can interact with any staking service, “then we have a different problem.”

Blish said, “The most disappointing thing is that we as an industry are constantly asked for transparency, but as a US citizen, transparency and [düzenleyicinin] No information is given about how the decision-making process is going.”

According to Blish, unlike centralized platforms like Kraken, Lido acts as a “plumbing” for staking:

“This is software. A user says either I choose to participate in the service offered or I do not agree. And the user has full control.”

Blish clarified that currently, withdrawal of ETH tokens on the Ethereum blockchain has not yet been activated, but once the withdrawal is activated, users will have full control over their funds.

*Not investment advice.

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