Crypto exchange Bitstamp has announced it will discontinue Ether (ETH) staking services for its U.S.-based customers starting September 25, 2023. This decision follows the recent suspension of trading for seven altcoins in the country.
Key Takeaways
- Bitstamp will end ETH staking services for U.S. users on September 25, 2023.
- The decision comes after halting trading for seven altcoins in the U.S.
- Legal uncertainties around crypto regulations in the U.S. are a significant factor.
Details of the Announcement
In a message shared with Cointelegraph, Bitstamp revealed that U.S. customers would continue to earn staking rewards until September 25, 2023. After this date, all staked assets will be unstaked, and both the rewards and the principal will be credited to users’ main Bitstamp account balances. Bobby Zagotta, U.S. CEO and global chief commercial officer at Bitstamp, noted that it might take a few days for users’ balances to reflect these changes.
Staking Rewards and Commissions
Bitstamp charges a 15% commission on all staking rewards. The monthly reward rate for staking ETH on the exchange is 4.50%, while the monthly reward for staking Algorand (ALGO) is 1.60%. With this move, the U.S. joins other countries where Bitstamp’s staking services are unavailable, including Canada, Japan, Singapore, and the United Kingdom.
Legal Context
The decision to halt ETH staking appears to be influenced by recent legal developments in the United States. In early August, Bitstamp announced that it would no longer offer trading for seven altcoins in the country: Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), The Sandbox (SAND), and Solana (SOL). While the company did not specify the reasons for this suspension, all seven tokens were classified as unregistered securities by the U.S. Securities and Exchange Commission (SEC) in June as part of its lawsuits against crypto exchanges Binance and Coinbase.
Regulatory Uncertainty
A central issue in the ongoing regulatory environment in the U.S. is whether ETH should be classified as a commodity or a security. The Commodity Futures Trading Commission (CFTC) has repeatedly called Ether a commodity. However, SEC Chair Gary Gensler has stated that Bitcoin is a commodity but has not clarified whether ETH should be considered a security.
Conclusion
Bitstamp’s decision to halt ETH staking services for U.S. users underscores the growing regulatory challenges facing the crypto industry in the United States. As legal uncertainties continue to loom, crypto exchanges and users alike must navigate an increasingly complex landscape.
Sources
- Bitstamp halts ETH staking in the United States , Cointelegraph.
