Creative design thanks to Canva
The Securities and Exchanges Commission (SEC) banning Crypto Staking in the United States has escalated a huge potential risk to the crypto industry. In fact, the news was the main reason why Bitcoin fell to $21,500 as of writing. Really SEC? Just we were seeing a good rally of crypto after a bloody 2022. Why at this moment when we are getting the momentum to eventually break that $25k wall?
What's off for me was that they chose Kraken one of the top exchanges in the US which have been complying with their regulations for years now. Like for example, when the US was asking proof of reserves, the Kraken exchange was one of the few exchanges that were quick to submit their proof of reserves. As mentioned by many, Kraken has been very ethical in complying with US regulators. So why do they need to hit on Kraken? Why did SEC not probe this staking feature on FTX, Celcius, or Gemini? Why at a time like this?
Green: Bitcoin price before the news | Black: Btc price after the news, courtesy of Google
On another note, they explained that the reason why they are stopping the Crypto staking platform in the US is that 1) Kraken didn't register Crypto staking, 2) Crypto Staking still has a lot of loopholes to be abused. The yield, APR, gain, interest, or whatsoever you call it has been subject to the ground for abuse. The United States doesn't want to squander the money again, they need to take action before user funds get obliterated again. So I understand the whole motive behind but why at a time like this? Why not last year when FTX and Celcius offered staking features too?
Anyway, for those who missed the ride, I think this is a perfect opportunity to buy. But not right now, in my opinion, I have a big feeling that they are targeting Coinbase next, and probably will hit on Binance too! So I think waiting for that news before jumping in another cash onto the crypto market is still a smart move. What do you think? Share with us your thoughts and let's discuss.