Due to new crypto laws, Americans who already are extremely cucked by crypto laws will be even more cucked.

The SEC is cracking down on staking.

They banned it for Kraken — one of the first exchanges to sell bitcoin — and slapped them with a $30 million fine. Now the SEC is going after Coinbase, the largest crypto exchange in America.

On Wednesday, Coinbase shares fell the most in over six months after news broke that earning money on your crypto (‘staking’) could be outlawed. If this shit goes through it will unironically send bitcoin to below 20k.

It’s a black swan no one saw coming.

There will be a mass selloff just from this news alone.

“Only Americans will be affected”

The global crypto community should realize by now that when you’re sharing a bed with an elephant, if it rolls over you get smashed.

Bannings slow the progress of cryptocurrency adoption, and the SEC is taking it one step further with a warning to all exchanges:

“Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” said SEC Chair Gary Gensler. “Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair and truthful disclosure and investor protection.”

The worst part is this hurts “retail traders” aka the common man, but lets institutional hedge funds keep on staking to their heart’s content.

It’s a transparent 2 tier system that the American slave public goes along happily with it.

I’m not stopping even if it gets banned.

Thankfully, there is good news.

These staking bans are only for exchanges.

All it does is solidify true crypto (DeFi) as king and moves us toward a future where exchanges will work in concert with decentralization. Unless they shut down the internet itself they can’t stop staking via DeFi.

Moreover, Coinbase is confident the bans won’t affect them.

Coinbase chief legal officer, Paul Grewal, said the company’s on-chain staking services are “fundamentally different:”

“Coinbase’s staking program is not affected by today’s news,” Grewal said in a statement to Bloomberg. “What’s clear from today’s announcement is that Kraken was essentially offering a yield product. Coinbase’s staking services are fundamentally different and are not securities.”

Anyways this ban isn’t against staking itself, this is against retail staking so that should tell you that staking is so valuable they have to put up barriers to prevent you from profiting.

Bitcoin is winning like Charlie Sheen

Proof of stake (POS) is ethereum’s blockchain mechanism and is roughly how 99% of cryptocurrencies operate.

Proof of work (POW) is bitcoin’s blockchain mechanism and isn’t at all affected by a ban on staking.

Bitcoin’s Maxis are dancing in the streets celebrating.

They shouldn’t be.

If BTC Maxis get what they want, they will have a $1,000 bitcoin.

You better hope the SEC doesn’t chase all the altcoins out of the space by regulating them as securities. Because what you’re going to do is chase money out of bitcoin. It’s like burning down every house in your town and saying “See, I’m the best house in the neighborhood because I’m the only one left standing.”

No. You’re in a crappy neighborhood now. And that’s what bitcoin maxis wind up doing.

Decentralizing money isn’t the only thing blockchain can solve.

Ethereum and other Web3 tech will empower content creators, make better algorithms, democratize finance, and even help with healthcare.

Stop fighting progress. You sound like one of those Westboro Baptist Church nutjobs.

Support the entire blockchain community.

BlackRock is winning, for real

I can already see it now, BlackRock and Citadel will shovel products that do staking in a roundabout way for a fee to retail investors, but direct staking at an exchange will be forbidden.

I hope it doesn’t come to this.

Really, I do.

Because as much as DeFi is the safest way to stake your crypto, for people like my mom, dad, grandma — or anyone who isn’t a crypto diehard, centralized staking is still easiest.

Tips from the gold rush

How did the gold market dump when gold was banned in the US for like 50 years?

Protip: It did not dump. It did the opposite.

A complete staking ban wouldn’t be bullish, but crypto would survive.

Besides, I don’t think it’ll come to that. The SEC is probably just trying to scare exchanges into compliance. Don’t count out the power of FUD (fear uncertainty doubt) to make a point.

The crypto space is always evolving and adapting, so, no matter what the SEC decides to do, the community will find a way. We’ve always been resilient and will continue to be.

Final thought

Taxing billionaires, banning offshore banking, closing various hedge fund loopholes — none of these things will happen anytime soon.

The US government would rather protect the wealthy elite than help out the everyday person.

But let’s be honest, crypto needs regulation.

Especially after the fraudulent, “Wolf of Wall Street”-style shenanigans that some exchanges pulled off in the past few years.

Let’s fight for smart regulations that protect the little guy, promote innovation, and build a stronger crypto economy.

The future depends on it.