{"id":141615,"date":"2023-09-01T21:12:40","date_gmt":"2023-09-01T15:42:40","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=141615"},"modified":"2023-09-01T21:12:40","modified_gmt":"2023-09-01T15:42:40","slug":"bitstamp-to-stop-eth-staking-in-us-amid-sec-crackdown-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bitstamp-to-stop-eth-staking-in-us-amid-sec-crackdown-crypto-news\/","title":{"rendered":"Bitstamp to Stop ETH Staking In US Amid SEC Crackdown – Crypto News"},"content":{"rendered":"

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One of the oldest crypto exchanges Bitstamp announced that it would discontinue ETH staking services for US customers starting September next month. The development comes amid the crackdown by the US Securities and Exchange Commission (SEC).<\/p>\n

Crypto staking refers to the practice of earning rewards by committing tokens to support the operation of a blockchain. Ethereum started offering ETH staking in December 2020, much before the blockchain transitioned to a Proof-of-Stake (PoS) network. However, the SEC considers certain products related to staking as unregistered securities.<\/p>\n

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Bobby Zagotta, CEO of Bitstamp US, mentioned that customers will continue to receive staking rewards until September 25, 2023. After this date, all staked assets will be unstaked, and both rewards and principal will be added to users\u2019 primary Bitstamp account balances. The usual duration for this procedure is a few days, though it might be extended based on network circumstances.<\/p>\n

The company is closing its staking features because of the regulations in the US. Zagotta said that Bitstamp is a highly regulated and reliable exchange. They have a system in place to regularly check the services they offer and consider the changing rules in all the places they work.<\/p>\n

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\u201cConsidering current regulatory dynamics in the US, we\u2019ve made the decision to discontinue staking for customers residing in the United States,\u201d said<\/a> Zagotta.<\/p>\n

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SEC Crackdown on Bitstamp and Crypto Staking<\/h3>\n

The US Securities and Exchange Commission has taken legal action against staking service providers in several cases. In lawsuits against both Coinbase and Binance, it argued that the staking programs can be considered investment contracts according to the Howey test.<\/p>\n

In June, the agency filed a lawsuit against Coinbase Global Inc., alleging that the company violated its regulations by providing staking services. Crypto exchange Kraken previously halted its staking offerings in the US after announcing a $30 million settlement<\/a> with the SEC to resolve similar allegations.<\/p>\n

Earlier this month, Bitstamp announced<\/a> a new fundraise with the goal of expanding its derivatives trading services in global markets.<\/p>\n

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills. <\/p>\n<\/p><\/div>\n

\n \"\"\"\" <\/div>\n<\/p><\/div>\n<\/p><\/div>\n
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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One of the oldest crypto exchanges Bitstamp announced that it would discontinue ETH staking services for US customers starting September next month. The development comes amid the crackdown by the US Securities and Exchange Commission (SEC). Crypto staking refers to the practice of earning rewards by committing tokens to support the operation of a blockchain. […]<\/p>\n","protected":false},"author":2,"featured_media":126771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-141615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=141615"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141615\/revisions"}],"predecessor-version":[{"id":146901,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141615\/revisions\/146901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/126771"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=141615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=141615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=141615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}