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We will stop the Ethereum Staking


Aug 20, 2022

Brian Armstrong, CEO of Coinbase, said on the 18th, “We will stop the Ethereum Staking (deposit) service in case of a problem.”

According to Decrypt, after the U.S. Treasury imposed sanctions on the use of tornado cache for virtual asset mixing services earlier this month, there are growing concerns among blockchain developers that government regulations could affect the conversion of equity proof after Ethereum operation and merge upgrades scheduled for Sept. 15.

In a related development, CEO Armstrong said on his Twitter that he would stop Ethereum Staking service to protect the integrity of the blockchain network in the event of a regulatory threat.

Lefteris Carapetsas, founder of open-source virtual asset analysis and accounting app Lockty, tagged Coinbase, Kraken, and Lido on Twitter and asked if the government would censor certain addresses at the protocol level or stop staking services and preserve network integrity.

“I don’t want this to happen,” Armstrong said. “But if we have to choose, we will stop the staking service and focus on the bigger picture.”

Decrypt evaluated Armstrong’s answer as noteworthy in that the Staking service could be the future food for Coinbase. This week, JP Morgan analysts said that the Ethereum Staking service will benefit Coinbase greatly after the Ethereum Merge upgrade.

Coinbase previously announced earlier this month that it will provide Ethereum Staking service for institutional customers for the first time. “We will continue to add staking assets for both individual and institutional customers in the future,” the exchange said.

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