Why Does SEC Ban Crypto Staking?

[Suba]

Crypto staking is a way for investors to earn passive income from their crypto, by guaranteeing/locking their crypto to participate in verifying/validating the accuracy of transactions on a blockchain that implements the Proof of Stake consensus mechanism.

In turn, stakers will be rewarded according to the amount of crypto they lock proportionally in the form of a percentage. So the more crypto they guarantee, the more rewards they will get.

Why is SEC Cracking Down on Crypto Staking Features?
SEC's decision to crack down on crypto staking due to lack of transparency and honesty by crypto staking organizers especially staking pools or staking-as-a-service as practiced by Kraken crypto exchange, not direct crypto staking or through private wallets.

 

[Stardom22]

I think crypto currency staking has helped many people to earn passively. The best part of it is that the process is so simple that even the beginners can be able to stack crypto currency and earn profits with ease.

 

[Suba]

I think crypto currency staking has helped many people to earn passively. The best part of it is that the process is so simple that even the beginners can be able to stack crypto currency and earn profits with ease.

But the SEC considers that crypto staking organized by staking pools lacks transparency, the risk is not fully disclosed to investors, especially on the Kraken crypto exchange, whether it is investment or lending in nature.

 

[Yohanna]

Cryptocurrency staking in is one of the ways at which you can make money in cryptocurrency business and it is a very viable.

 

[Stardom22]

I think the SEC found some irregularities on the whole process of crypto staking. I am glad it haulted this for the aim of curbing the laundering and embezzlement of the Crypto

 

[Yohanna]

I think the SEC found some irregularities on the whole process of crypto staking. I am glad it haulted this for the aim of curbing the laundering and embezzlement of the Crypto

Sec would always find some irregularities in cryptocurrency and I am beginning to think that they don't like crypto at all.

 

[Suba]

I think the SEC found some irregularities on the whole process of crypto staking. I am glad it haulted this for the aim of curbing the laundering and embezzlement of the Crypto

The SEC also often considers crypto staking organizers as having no clear purpose, whether crypto is participation in capital funds on crypto exchanges which is very different if we stake crypto in private wallets.

 

[Stardom22]

I think there is something fishy in the world of the Crypto currency staking that's why the SEC had a compromise on the staking for it and the way it's handled.

 

[Yohanna]

I think there is something fishy in the world of the Crypto currency staking that's why the SEC had a compromise on the staking for it and the way it's handled.

Cryptocurrency staking is very compulsory for cryptocurrency blockchain and I do not see the reason why it will be banned.

 

[Blessed19]

One thing I got to learn about crypto staking is that it is a means where by you get to earn passively on the crypto platforms that supports it but the SEC crack down on it is due to it's lack of transparency on the Kraken exchange.

 

[nomad]

SEO considers some crypto assets as securities. However, none of the cryptos have been registered as securities. This is the reason why SEO filed cases against Coinbase and Binance exchanges