Key takeaway
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Cryptocurrency exchange Bitstamp has halted its staking service in the United States.
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The crypto exchange cited regulatory challenges as the reason behind its decision.
Bitstamp to halt crypto staking in the US
Luxembourg-based cryptocurrency exchange Bitstamp has revealed that it is shutting down its staking service in the United States.
Bitstamp said it would stop offering staking services to its users in the United States as of September 25 due to the regulatory environment in the country.
This latest cryptocurrency news comes as the United States Securities and Exchange Commission (SEC) continues to clamp down on crypto exchanges and some of their services.
The SEC has been against staking, alleging that the service meets the criteria of investment contracts under the Howey Test.
Bitstamp is not the first crypto exchange to end crypto staking in the United States. In February, Kraken agreed to shut down its staking operations in the United States to settle SEC charges for offering unregistered securities.
Kraken also agreed to pay a $30 million fine to the US SEC as a settlement for its charges.
Cryptocurrency staking has become an important investment vehicle in the space as it allows investors to earn extra rewards for holding their coins and providing liquidity to the ecosystem.