DeFi Can Face Uncertain Consequences As A Result Of SEC’s Cryptocurrency Staking Crackdown, Says Lido Finance
The US securities regulator is reportedly cracking down on the services related to crypto staking. As per Lido DAO’s head of business, this could lead to some unexpected consequences. Jacob Blish, the person responsible for leading the decentralized autonomous organization of Lido, was recently interviewed by Bloomberg.
Lido Finance Protocol Says DeFi Will Experience a Bad Impact Due to SEC’s Clampdown over Crypto Staking
As per the reports, the executive mentioned stated that the most noteworthy hazard would take place if the securities regulatory agency of the US ultimately bans crypto staking. The executive is of the view that if US residents are prohibited from taking advantage of the crypto-staking-related services, the things resulting from this would be terrible.
The ban on US citizens in terms of communicating with the staking-related services as well as contributing to the protocols offering such facilities would pose the biggest risk, in Blish’s words. He added that he is a DAO contributor. Blish added that being in that position does not indicate that he cannot be challenged because of the staking ban.
He stated this in the form of a question, emphasizing that this should not happen. The Lido DAO is credited for managing the Lido protocol’s governance, and the DAO members from across the globe vote on the crucial decisions to drive the protocol.
The continuous lawsuit filings by the Securities and Exchange Commission as well as its enforcement measures taken by the agency against several members of the crypto industry, have cautioned Blish.
Hence, the executive has also become a part of the people who are growing day by day and calls for additional transparency in the regulations to enable innovation. He disclosed that it is quite disappointing that the whole crypto industry continuously asks for transparency.
On the other hand, he specified they are not provided with any transparency at the end regarding the decision-making procedure of the financial regulatory agencies.
On the 9th of this month, the US securities watchdog levelled charges against the well-known crypto exchange platform named Kraken.
As per the SEC, it failed to get a license from the regulatory body before providing its staking-as-a-service project for crypto assets. In addition to this, the SEC asked the crypto exchange to shut down its staking facility to the consumers living in the US jurisdiction.
The latest enforcement measure of the securities regulatory agency witnessed the defence of the staking services by Brian Armstrong (the chief executive officer of the crypto exchange entity Coinbase). On the 9th of February, the executive anticipated that the way chosen by the US regulatory body would be horrible if it were to prohibit crypto staking.
Apart from that, Paul Grewal (the person serving Coinbase as its chief legal officer) also shared some Twitter posts on this issue on the 10th of this month. According to the executive, the common masses require parsing the complaints filed to the federal court to comprehend the expectations of a regulatory agency.
Clearpool Announces Deploying Its Prime Protocol on Polygon
On the other hand, Clearpool (a decentralized finance protocol) has selected the Polygon network (a tool for Ethereum scaling) for the deployment of Prime (an institutional credit forum).
As per Rob Alcorn (the chief executive officer of Clearpool), the platform has a close bond with Polygon. In his words, both entities can work in collaboration to offer institutional DeFi-related products
