Cryptocurrency exchange Bitstamp is shutting down its Ethereum staking service in the US.
Crypto exchange Bitstamp has announced that it has decided to end its staking services in the US starting next month. Bitstamp ended the Ethereum staking program for customers in the US, taking into account the approach of US regulators that staking services should be considered under investment contracts and registered as securities.
Bitstamp announces discontinuation of Ethereum staking service in the US
“From September 25, 2023, Bitstamp will no longer offer staking services in the US,” Bobby Zagotta, Bitstamp USA CEO and global chief commercial officer, said in a statement. After this decision, US users will no longer be able to receive staking rewards. However, Bitstamp’s other services will not be affected.
This decision was made because of the difficult regulatory environment in the US and the fact that staking services are considered by the Securities and Exchange Commission (SEC) as investment contracts. The recognition of such staking services as securities may result in exchanges being subject to more regulatory obligations.
Bitstamp’s staking program was only offered to US users for Ethereum (ETH) with a 15% commission. But now this service will end and users will no longer be able to receive staking rewards. The rewards, along with the principal, will be transferred to users’ main Bitstamp account balances.
Bitstamp’s move could be considered as part of a halt to US trading of some tokens that were recently designated as unregistered securities by the SEC. Regulators seem to be inclined to increase more regulation and oversight in the crypto market.
