What investors need to know about ‘staking,’ the passive income opportunity at the center of crypto’s latest regulation scare
Publishing timestamp: 2023-02-11 12:19:32
Summary
Ether's price is falling due to fears that the SEC could crack down on staking, a process that allows investors to earn passive yield on their cryptocurrency holdings. Kraken recently settled with the SEC for $30 million for failing to register its staking-as-a-service program. Staking works only for proof-of-stake networks like Ethereum, Solana, Polkadot and Cardano, and there are risks associated with it, such as potential bugs in the code and volatility.
Sentiment: MIXED
Keywords: markets, investment strategy, business news, coinbase global inc, ethereum/usd coin metrics, industry regulation, sec,
Source: https://www.cnbc.com/2023/02/11/what-investors-need-to-know-about-crypto-staking.html