Bitstamp Suspends ETH Staking For US Customers Amid Regulatory Hurdles
The USA continues to face more criticism for not having ample crypto regulations. Just a few months ago, The EU approved a new bill dubbed 'MiCA' aimed at regulating crypto assets.
When the SEC asked about the status of crypto assets, it failed to provide any answer at all. As a result, all the users from the USA are now facing the impact of the SEC inaction.
25th September Is The Deadline
In the recent turn of events, the Bitstamp exchange announced that it would be ending the ETH staking services for US customers. As per the details, the US customers can continue to use the ETH staking service till 25 September. ETH staking is a process in which users can earn rewards for locking their ETH holdings.
Once the deadline of 25th September is passed, any staked crypto assets will be unstacked automatically and added to the user's account balance.
Bitstamp made it clear in a recent statement that the US regulatory hurdles are the main reason behind the suspension of staking services. They also added that the regulatory dynamics in the country no longer allow them to offer services to US customers.
Just a month ago, Bitstamp also stopped offering a total of 7 cryptocurrencies like SOL and MATIC to US customers. At that time, the exchange didn't specify any reason, but experts believe it had to do with them being regarded as unregistered securities by the SEC.
The deadline is set for 29th August, after which the trading of the SOL, MATIC, AXS, and a few other cryptocurrencies will be stopped by the Bitstamp.
That's why the firm urged the users to close any open or pending orders. They also added that withdrawing and holding these tokens will still be supported after the due date.
In a tweet, the company said that the SEC is taking legal action against many crypto firms like Coinbase and Binance. To save the firm from any undue legal action, Bitstamp is being proactive.