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One of the leading cryptocurrency exchanges, Bitstamp, has communicated its intention to conclude its Ether (ETH) staking service for users in the U.S. by September 25, 2023. Upon this action, all staked assets will be returned, and both rewards and principal amounts will be transferred into Bitstamp customer accounts. A minor delay may be experienced during this transition, alerts Bobby Zagotta, the U.S. CEO and chief commercial officer at Bitstamp.
Staking rewards on the Bitstamp platform come with a 15% commission charge. ETH stakers experience a monthly reward rate of 4.50%, whereas those staking Algorand achieve a 1.60% monthly reward. This recent policy shift sees the United States join other nations like Canada, UK, Singapore, and Japan, where Bitstamp’s staking services aren't offered.
This move by Bitstamp seems to be a reaction to unfolding legal scenarios in the U.S. Earlier in August, Bitstamp relayed that several cryptocurrencies would be discontinued in the U.S. market. Notably, these tokens had been labeled unregistered securities by the U.S. Securities and Exchange Commission (SEC), leading to legal actions against cryptocurrency exchanges.
Ether, the foundational cryptocurrency of the Ethereum blockchain, holds its position second only to Bitcoin in market value. A pivotal debate in the U.S. regulatory scene is whether ETH should be identified as a commodity or a security. The Commodity Futures Trading Commission categorizes Ether as a commodity. However, while SEC Chair Gary Gensler has confirmed Bitcoin's commodity status, the classification of Ether remains undetermined.
Additionally, the decision by Bitstamp reflects a broader trend of cryptocurrency exchanges exercising caution in the face of evolving regulatory frameworks. The U.S., with its powerful financial institutions, has long been a significant player in shaping global financial regulations. This ongoing ambiguity highlights the pressing need for clearer regulations in the ever-evolving world of cryptocurrencies.
