BlocksInform
U.S. securities regulator crackdown on crypto staking could have unintended consequences for decentralized funding, according to Lido Dao's head of business development.
Jacob Blish — who leads business development at Lido’s decentralized autonomous organization — told Bloomberg in a Feb. 13 report that the most significant risk would be if the SEC eventually concluded that no U.S. citizen can interact with crypto staking services, including protocols.
“Biggest risk I've ever seen as a person based in the United States who comes to us and says they can't even interact or contribute to these kinds of protocols any more.”
So me, as an DAO collaborator, does this mean that I can no longer work on Lido? Is there anything else I should do?" she added.
The governance of Lido is managed by the Lido DAO with members from all over the world voting on critical decisions that steer the protocol.
In the wake of the SEC launching lawsuits and other enforcement actions against crypto firms, Blish joined a growing number of people in the crypto industry calling for more transparency around regulations and rules going forward, saying:
"What is most disappointing is that we continue to be asked to be transparent.
On Feb. 9 the SEC charged crypto exchange Kraken with “failing to register the offer and sale of their crypto-asset staking-as-a-service program,” prompting the exchange to halt offering staking to its U.S. customers.
It is my sincere hope that someone will prove before the courts that there is a legal and user-friendly version of conservation staking that can be made available to consumers. It will be a brutal, long, costly battle and a huge distraction, but industry and the United States will be extremely thankful. https://t.co/lhZPxykznD
— Jesse Powell (@jespow) February 9, 2023
The SEC’s latest action saw COINBASE co-founder and CEO Brian Armstrong defend staking in a Feb. 9 tweet, saying it would be "a terrible road for the United States" should a staking ban occur.
Related: Paxos facing SEC lawsuit over BINANCE USD — Report
Coinbase chief legal officer Paul Grewal built on Armstrong’s tweets on Feb. 10, asking for clearer rules for the industry.
Related: Paxos facing SEC lawsuit over Binance USD — ReportCoinbase chief counsel Paul Grewal built on Armstrong tweets on Feb. 10, demander pour les regles de clearer pour le industrie.
