Bitstamp, one of the crypto exchanges with the longest operational history, has made the decision to discontinue its Ethereum (ETH) staking program for users based in the United States.
According to a statement made by Bobby Zagotta, Bitstamp’s CEO and Global Chief Commercial Officer, the halt of the service by the exchange will begin on September 25, 2023. Until the said date, customers will continue earning staking rewards, and afterward, all staked assets will be unstake.
As such, the rewards and the principal will be credited to the users’ main Bitstamp account balances. Bobby also mentioned that the process will take a few days but can be extended if they experience network delay.
Bitstamp Affirms Dedication Compliance
While U.S. users will no longer have access to the Ether staking program on Bitstamp, the exchange remains committed to providing a secure and compliant trading experience for all. It is worth noting that Bitstamp’s decision does not indicate a retreat from its overall commitment to the crypto space. Instead, it reflects a strategic realignment prompted by the dynamic regulatory landscape.
Having established itself as a pioneer in the realm of digital asset trading, Bitstamp’s decision to terminate its Ether staking program for U.S. customers is generating ripples of interest. This initiative allowed users to earn rewards by participating in the validation of transactions on the Ethereum (ETH) blockchain.
Consequently, the winding down of the staking program in the U.S. underscores the evolving regulatory environment surrounding crypto in the country. As regulatory frameworks continue to take shape, exchanges, and platforms are faced with the challenge of adapting and aligning their offerings with these evolving guidelines.
Consequence of SEC’s Crackdown on Cryptocurrency Staking
Recall that as a result of the US Securities and Exchange Commission’s (SEC) crackdown on Kraken, one of the people behind Lido Finance, the most prominent Decentralized Finance (DeFi) application for staking, has warned of a new set of ramifications for similar service providers.
Also Bitstamp had earlier announced that the platform will stop trading operations for seven cryptocurrencies including Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), The Sandbox (SAND), and Solana (SOL) for customers within the US. All of these assets have been tagged as unregistered securities by the regulator in its lawsuit against major crypto exchanges.