The leading cryptocurrency exchange – Bitstamp – will reportedly disallow US customers to stake cryptocurrencies from September 25.
The decision comes as a result of the “current regulatory dynamics” in the world’s largest economy, Chief Executive Officer Bobby Zagotta said.
US Citizens Affected Once Again
The world’s longest-running crypto exchange – Bitstamp – will become the latest digital asset organization to halt certain offerings to American clients due to the hostile attitude from the US Securities and Exchange Commission (SEC).
Staking services (pledging tokens to help validate transactions on the blockchain network and later earning rewards) will no longer be available from the end of September.
The SEC waged war on such offerings in February this year when it pressed charges against the crypto exchange Kraken. The watchdog accused the company of providing an unregistered crypto-staking program, demanding its termination. Kraken agreed and vowed to pay $30 million in disgorgement, prejudgment interest, and civil penalties.
The securities regulator did not stop there and went on the offensive against two other industry leaders – Binance and Coinbase. It claimed both exchanges violated several laws and offered trading services with unregistered securities such as BNB, BUSD, SOL, MATIC, ADA, and more.
This regulatory uncertainty prompted Bitstamp to bar American clients from dealing with several altcoins part of the SEC’s list. The assets in question include AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL, as amendments will take effect from August 29.
Who Else Stopped Crypto Services for US Users?
The regulatory chaos in the crypto sector that the US SEC has caused with its controversial decisions became a reason for some companies to cease services to American clients.
One example is the US gaming merchandise retailer GameStop, which announced that it will terminate its cryptocurrency wallet program from the beginning of November.
The fintech giant – Revolut – is also part of that club. It will no longer enable American customers to purchase digital assets from September 2, while selling and holding will be available until October 3.
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US,” the team behind Revolut stated.