On September 25th, the cryptocurrency exchange will stop offering staking services to users in the United States; this decision was made shortly after Bitstamp stopped trading seven altcoins in the nation.
Bitstamp, the pioneering cryptocurrency exchange, has made a strategic decision to halt its staking services for customers based in the United States. This pivotal move, set to take effect from September 25, marks the end of Ether staking for U.S.-based users. The announcement, conveyed exclusively to Nosisnews, signifies a significant development in the evolving regulatory landscape.
Transition and Implications
Bobby Zagotta, Bitstamp’s U.S. CEO and global chief commercial officer, offered insights into the transition, stating, “Customers will continue earning staking rewards up until September 25, 2023, and after that, all staked assets will be unstaked.” In this recalibration, rewards, alongside the principal, will be seamlessly transferred to users’ primary Bitstamp account balances. Zagotta emphasized that while adjustments take place, it may take a few days for users to observe the changes reflecting in their balances.
Related: Coinbase Staking Services Suspended in Four US States
Bitstamp’s staking rewards structure has been characterized by a 15% commission on all rewards, which is a notable industry standard. The allure of staking has been magnified by the monthly reward rate for staking Ether, which has stood at an impressive 4.50%. In comparison, staking Algorand has yielded a monthly reward rate of 1.60%. However, as the curtain falls on U.S.-based staking services, the nation joins others, such as Canada, Japan, Singapore, and the United Kingdom, where Bitstamp’s staking services are not available.
Update for our US users 📢
— Bitstamp (@Bitstamp) August 8, 2023
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
More info:…
Navigating Regulatory Complexities
The discontinuation of staking services within the United States appears to be intricately linked to the rapidly evolving legal landscape. In recent times, Bitstamp announced the suspension of trading for seven altcoins within the country. Notably, these tokens, including Axie Infinity, Chiliz, and Polygon, were deemed unregistered securities by the U.S. Securities and Exchange Commission (SEC) in its legal actions against industry giants Binance and Coinbase.
As the regulatory currents surge and ripple across the cryptocurrency ecosystem, a central question surrounding Ether, the native cryptocurrency of the Ethereum blockchain, lingers. Is Ether a commodity or a security? While the Commodity Futures Trading Commission has consistently classified Ether as a commodity, the stance of SEC Chair Gary Gensler on whether Ether is a security remains enigmatic. These intricate classifications continue to shape the landscape of digital assets within the U.S., leaving both exchanges and investors adapting to the evolving regulatory landscape.
Related: Major Altcoins to Be Delisted from Bitstamp for US Users