Bitstamp ending ETH staking for US customers in September

ETH staking will end on September 25 for US customers

article-image

Art Rachen/Shutterstock modified by Blockworks

share

Bitstamp is ending ether staking for US customers effective Sept. 25.

In a statement emailed to Blockworks, Bitstamp US CEO Bobby Zagotta said, “As a result, US customers will stop receiving staking rewards. All other Bitstamp services will remain unaffected.”

“Customers will continue earning staking rewards up until Sept. 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,” the emailed statement continued.

The company said that it is shuttering its staking features due to the US regulatory environment, with Zagotta telling Blockworks 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.”

“Considering current regulatory dynamics in the US, we’ve made the decision to discontinue staking for customers residing in the United States.”

The US Securities and Exchange Commission has — in multiple legal actions — targeted staking services. In its lawsuits against both Coinbase and Binance, it claimed that the staking programs fall under investment contracts under the Howey test.

“At all relevant times, the Coinbase Staking Program, as it applied to each of the five stakeable assets, was an investment contract under Howey, and therefore a security, whose offers and sales were subject to registration under the Securities Act,” the SEC said in its suit against Coinbase.

In June, following the SEC’s suit, multiple states targeted Coinbase’s staking program, with Alabama saying that investors are not protected from potential losses, as “3.5 million staking rewards program accounts nationwide are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).”

Additionally, the SEC settled with Kraken back in February over its staking products. 

The company previously told Blockworks that it “agreed to end its on-chain staking services for US clients only. Starting today, with the exception of staked ether (ETH), assets enrolled in the on-chain staking program by US clients will automatically be unstaked and will no longer earn staking rewards. Further, US clients will not be able to stake additional assets, including ETH.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid