- ARK Invest founder Cathie Wood claimed that the current regulations in US don’t allow them to win against foreign ones.
- Nic Carter posted that third-paty staking ban is bad for exchanges but good for protocols themselves.
- Coinbase CEO tweeted that the US SEC is considering to ban staking for retail users.
ARK Invest Founder, CEO, and CIO, Cathie Wood replied to a Twitter thread discussing staking-as-a-service in the US with “US exchanges lose to foreign exchanges.”
The conversation started when Castle Island Ventures partner Nic Carter shared that “3rd party staking ban isn’t good for exchanges,” however, it is a “blessing in disguise” for the protocols.
According to Carter, Staking enables exchanges to become dominate nodes, allowing protocols to capture is the main reason behind PoS failure mode.
ARK Invest’s director of research, Frank Downing retweeted the post while adding that,
US staking-as-a-service ban rings of “China mining ban” moment for PoS networks.
In Cathie Wood’s view, decentralization wins when activity moves to offshore exchanges or to self custody, self sovereignty, and self control. However, due to the current regulatory framework, US exchanges are designed to lose against foreign platforms which is “not so good for US competitiveness in the crypto revolutions,” Wood concluded.
On February 9, Coinbase co-founder and CEO, Brain Armstrong addressed “rumors” about hte U.S. Securities and Exchange Commission considering a ban on cryptocurrency staking for retail customers.
While Armstrong called this a “terrible idea,” he emphasized the importance of staking since it allows users to participate directly in running open crypto networks and brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.
He also mentioned that staking is not a security, and the US needs to build new technology to encourage the growth of web3 and financial services in the country. Additionally, Armstrong claimed that regulation by enforcement only forces companies to operate offshore, which is what happened with FTX.
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