In this comprehensive report, discover the crucial details about Bitstamp’s decision to halt crypto staking services for its US clients. Gain insights into the reasons behind this action and how it could impact the crypto community in the United States. Stay informed with the latest developments in the cryptocurrency industry by reading this informative report.
Bitstamp to Discontinue Crypto Staking Services for US Customers
The leading cryptocurrency exchange, Bitstamp, recently announced that it will no longer allow US customers to stake cryptocurrencies starting from September 25. This decision comes in response to the “current regulatory dynamics” in the US, according to Chief Executive Officer Bobby Zagotta.
US Citizens Affected Once Again
Bitstamp is joining the growing list of digital asset organizations that have halted certain offerings for American clients due to the hostile attitude from the US Securities and Exchange Commission (SEC). Staking services, which involve pledging tokens to help validate transactions on the blockchain network and earning rewards, will no longer be available from the end of September.
The SEC had previously taken action against other crypto exchanges, such as Kraken, Binance, and Coinbase, for providing unregistered crypto-staking programs and violating securities laws. This regulatory uncertainty has prompted Bitstamp to bar American clients from dealing with several altcoins, including AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL.
Who Else Stopped Crypto Services for US Users?
The US SEC’s controversial decisions in the crypto sector have caused a ripple effect, leading some companies to cease services to American clients. For example, GameStop, a US gaming merchandise retailer, announced that it will terminate its cryptocurrency wallet program from November. Fintech giant Revolut has also decided to suspend access to cryptocurrencies for American customers, citing the evolving regulatory environment and uncertainties in the US crypto market.
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US,” stated the Revolut team.
It is evident that the SEC’s regulatory actions have caused disruptions and challenges in the US crypto industry, affecting both crypto exchanges and other companies offering crypto services. As the landscape continues to evolve, market participants will need to navigate these regulatory dynamics to ensure compliance and maintain a sustainable business model.