Cryptocurrency exchange Bitstamp announced it would end Ethereum (ETH) staking services to its US customers as of September 25. The exchange cited the US regulatory environment as a deciding factor.
The Luxembourg-based cryptocurrency exchange Bitstamp announced it would end ETH staking services to its US customers on September 25. The exchange told Blockworks it would shutter staking services due to the US regulatory environment.
Bitstamp Cites Uncertain US Regulatory Environment
In a statement, Bitstamp US CEO Bobby Zagotta said:
“As a result, US customers will stop receiving staking rewards. All other Bitstamp services will remain unaffected.”
He continued to say,
“Customers will continue earning staking rewards up until September 25, 2023, and after that, all staked assets will be unstaked. Rewards, along with the principal, will be credited to users’ main Bitstamp account balances. Typically, this process takes a few days but could be extended depending on network conditions.”
Zagotta explained the uncertain regulatory environment in the US motivated the exchange’s decision to discontinue staking services. He noted that “as one of the most regulated and trusted exchanges in the world, we have a comprehensive framework in place to continuously evaluate the services we support, taking into account the evolving regulatory environment in all jurisdictions in which we operate.”
Further stating:
“Considering current regulatory dynamics in the US, we’ve made the decision to discontinue staking for customers residing in the United States.”
Staking Controversy Continues
Staking services in the US have been a topic of considerable controversy recently. The US Securities and Exchange (SEC) came
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Author: Jana Serfontein
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