The recent ban on Tornado Cash – a protocol that scrambles transactions in blockchain and makes it difficult to track cryptocurrencies – by the United States Department of the Treasury continues to worry agents of the crypto market, according to Decrypt.
With the approach of “The Merge”, update of the Ethereum (ETH) that will transition from blockchain to proof-of-stake (PoS), another similar concern arises: Will US government regulations impact Ethereum’s operation and transactions after the upgrade?
O CEO from crypto exchange Coinbase (COIN), Brian Armstrong, responded to questions on Twitter about a what-if scenario, and said he would end the staking of Ethereum offered by the company, in case there was a regulatory threat.
Armstrong said he would do this to preserve the integrity of the blockchain network.
The CEO’s comments Coinbase were given in response to questions from Lefteris Karapetsas – founder of crypto accounting and analytics app Rotki.
On the social network, Karapetsas tagged important companies linked to Ethereum, challenging them to choose between two options if regulators required these companies to censor specific addresses.
“You will a) answer [às exigências] and will censor at the protocol level [ou] b) terminate the staking service and preserve the integrity of the network,” the app’s founder asked in a tweet.
the CEO of Coinbase – which so far has been the only one who has answered the questions – said that the scenario “is hypothetical, we hope not to face this in fact”.
“But if we faced it, I would choose option B, I think. You have to focus on the bigger picture.”
Armstrong said a third and better option could emerge, or that a legal challenge “could yield a better outcome.”
Staking Could Boost Coinbase Revenue
The response from the crypto exchange’s CEO is remarkable, as the Coinbase is placing strong bets on the staking service, according to Decrypt.
This week, the investment bank JPMorgan (JPMC34) stated that the staking service will be a great opportunity for the Coinbase increase revenue.
The bank anticipates that Coinbase can generate more than US$ 650 million in annual staking revenue after “The Merge”, assuming ETH stands at $2K with a 5% yield.
“In early August, we started offering Ethereum staking service to institutional clients for the first time,” the crypto exchange stated a week ago.
*With Decrypt information
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
