According to a statement made on August 23, cryptocurrency exchange Bitstamp will cease offering Ethereum (ETH) staking services to American customers within a month.
The business mentioned:
Prospects will continue to get benefits for staking until [Sept.] 25, 2023, after which all staked property will presumably be unstaked.
According to Bitstamp, clients’ primary and rewards (i.e., the distinct amount deposited) might be credited to their main account balances. The business however cautioned that this process can take several days and might be impacted by local conditions.
Customers in the United States of Bitstamp appear to have no staking options due to the change in providers. Algorand (ALGO) staking is a feature that the platform also offers, however it is already inaccessible in the US. Additionally, staking for Ethereum and Algorand is not yet available in Canada, Japan, Singapore, or the United States.
The decision follows efforts taken by the U.S. Securities and Trade Fee (SEC), which recently examined sites offering staking services.
Most significantly, the securities regulator asserted in litigation it brought against each cryptocurrency company in June that staking services offered by Coinbase and Binance constitute securities. As part of a $30 million settlement, the SEC also ordered Kraken to stop offering its staking service in the United States in February.
Bitstamp will delist seven American tokens
Bitstamp previously announced on August 8 that it would stop trading for seven cryptocurrency tokens in the U.S. due to changes in local regulatory framework.
Although Bitstamp didn’t specifically mention the relevant developments, the decision seemed to be in response to the ongoing SEC cases against Binance and Coinbase mentioned above. The tokens in question were classified as securities in these situations.
By August 29, 2023, the impacted tokens are expected to be unavailable to US clients for purchase and sale. Bitstamp will end Ethereum staking for American customers in September. The original version of this article published on CryptoSlate.
