Crypto NewsEthereumGiant Cryptocurrency Exchange Announces It Has Stopped Ethereum Staking Service!

Giant Cryptocurrency Exchange Announces It Has Stopped Ethereum Staking Service!

The giant cryptocurrency exchange announced that it will stop Ethereum staking services in the United States from September 25.

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Luxembourg-based cryptocurrency exchange Bitstamp has announced that it has decided to cease Ethereum staking services in the United States from September 25.

Bitstamp Discontinues Ethereum Staking Services in USA

This move came in response to the regulatory environment surrounding staking activities in the country. Bitstamp emphasized that while staking services will be affected, all other operations will not.

The United States Securities and Exchange Commission (SEC) has recently intensified its scrutiny on staking, raising concerns that it may meet the criteria for investment contracts based on the Howey Test, a legal precedent used to determine whether certain transactions qualify as securities under U.S. law.

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The decision to discontinue Ethereum staking services reflects a broader trend in the industry.

Earlier in February this year, Kraken, another leading cryptocurrency exchange, agreed to terminate its staking operations in the US to settle the charges brought by the SEC.

Interestingly, the cryptocurrency ecosystem is witnessing the development of decentralized and non-custodial staking derivatives markets, unlike traditional exchange-provided staking services.

A report by HashKey Capital predicted a staggering $24 billion growth for the Ethereum Liquid Staking Derivatives market over the next two years.

Unlike centralized exchange services, these decentralized platforms offer users more control over their staked assets and try to keep up with evolving regulatory demands.

*Not investment advice.



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