I was reading news that SEC wants to ban staking completed mostly for U.S. citizens. And in the process, it has asked Kraken Exchange to shut down the staking service in the U.S. and asked them to pay the penalty for the same. The problem is that they have started with Kraken but there might be some other crypto exchanges that are running similar offerings. Those exchanges have to shut down their staking rewards too.
PC: Pixabay.com
The main thing SEC is concerned that the exchanges are not providing enough disclosure to the customers about how they will be protecting their assets. And in the name of protecting customers' assets, the SEC has done this crackdown. But to be honest, banning the PoS is the worst possible move that can happen. The only reason people go for Staking is for rewards where the FD is giving just 1-5% returns whereas in Staking people can earn anywhere between 10-20% safely. Also with this ban, U.S. investors will be moving their funds to different countries and thus can badly affect the U.S. itself.
This is the problem we crypto investors are actually facing and thus have to fight for it. Some other day some government agencies will come and start banning something or making the crypto illegal itself. Or can actually ask to pay a hefty tax? this possible crackdown by the government is what makes the crypto community stronger, to be honest.
I see a silver lining here because we all know that we should not trust the centralized exchanges, and thus this move can help people get away from the centralized exchange and they can hold their crypto. If they really want Staking Rewards, Hive is the best-decentralised platform to help them. This move is good to some extent too in my opinion.
This is just my opinion but I know this is just the start, there will be more such moves by these governments t ban crypto in the name of regulations and other things. What we have to do is to invest in quality projects and continue growing our assets.
