SEC crackdown could ‘benefit’ decentralized staking if it isn’t banned – Lido exec

admin February 13, 2023

1 1 minute read

Jacob Blish, head of business development at the Decentralized Autonomous Organization (DAO) that operates Lido Finance, said the SEC enforcement action is likely to be a “net profit” for decentralized liquid staking providers. But it “really depends on what the final solution is,” Bloomberg News reported.

Blish said the SEC’s decision-making process is uncertain and confusing. He said:

“The most disappointing thing is that as an industry we continue to be asked for transparency, but as a US citizen I have not been able to get transparency and how [the regulatory] A decision-making process is in progress. “

According to Blish, a decentralized staking platform like Lido serves as the necessary “plumbing” for the staking service. Platforms provide software services and it is up to you to use them. The user has “total control”.

This is different from staking offered by centralized exchanges where users hand over control of their assets to the exchange.

Blish’s comments follow Kraken’s $30 million settlement with the SEC and the shutdown of its staking service in the United States. The SEC alleged that Kraken offered unregistered securities through its staking service.

According to Blish, the biggest risk of the SEC’s enforcement action against Kraken would be prohibiting US citizens from interacting with or contributing to the staking protocol.

A complete ban on participation in cryptocurrency staking would not only stop users from staking assets, but could also force contributors to abandon the project, he added.

Crackdown after SEC crackdown could bring “benefits” if decentralized staking wasn’t banned – Lido exec first appeared on CryptoSlate.