Crypto

Amid regulatory scrutiny, Bitstamp will cease ETH staking in the US.

Due to the country’s regulatory framework, Bitstamp said it will be discontinuing its staking service in the U.S. as of September 25.

Staking has been heavily criticised by the Securities and Exchange Commission (SEC), which claims it satisfies the Howey Test’s conditions for investment contracts.

Following a meeting behind closed doors, Kraken decided to end its bitcoin staking operations in the United States in order to resolve SEC charges of marketing unregistered securities.

Ether.Fi, a decentralised staking platform, closed a $5.3 million round in May, according to a report from HashKey Capital, and the ether Liquid Staking Derivatives market is expected to grow by $24 billion over the next two years despite not being centralised or custodial like services provided by exchanges.

 

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