Coinbase Global Inc COIN CEO Brian Armstrong expressed concern about rumors about the US Securities and Exchange Commission getting rid of Staking Cryptocurrencies in the United States for private customers.

What happened: Armstrong said in a Twitter thread that he felt it would be a “terrible path for the US if allowed to do so.”

Armstrong called staking a “really important innovation in crypto” that allowed users to “participate directly in the operation of open crypto networks.”

“Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprint,” said the Coinbase co-founder.

See also: 9 Best Coinbase Alternatives in 2023

Why it matters: Armstrong said, “We need to make sure that new technology in the US is encouraged to grow and not stifled by a lack of clear rules.”

Coinbase’s top executive condemned “regulation through enforcement,” saying it has helped offshore companies such as Sam Bankman Friedis FTX.

Armstrong’s company faces an SEC investigation Staking programs and revenue-generating products. The exchange facilitates trading of digital assets such as Bitcoin BTC/USD And ether ETH/USD and other tokens.

Price promotion: On Wednesday, Coinbase shares closed 2.8% lower at $69.44, down 0.3% in after-hours trading Benzinga Pro data.

Continue reading: Bitcoin’s ‘Golden Cross’ Confirmed – Will This Bring Apex Crypto Rally? Analysts consider

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