Ethereum on verge of FUD? Coinbase CEO tweet ruffles feathers
- Coinbase CEO’s tweet sparked speculation on SEC’s new crypto rulings.
- New regulations could impact the crypto industry and lead to problems.
The crypto world has been buzzing for the last 24 hours, thanks to a tweet by Coinbase CEO Brian Armstrong. The speculation triggered by the tweet revolved around the potential impact of the SEC’s new rulings on the crypto space.
1/ We're hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that's not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.
— Brian Armstrong (@brian_armstrong) February 8, 2023
Read Ethereum’s [ETH] Price Prediction 2023-2024
Armstrong’s tweet suggested that the SEC might look to eliminate crypto staking for retail customers in the U.S. The reason cited for this move was the SEC’s view of Ethereum as a security post the launch of its staking feature.
Armstrong added that regulation by enforcement would force companies to move offshore. This would lead to more FTX-like problems for the crypto industry, according to him.
Armstrong’s tweet may trigger FUD in the crypto space, as many prominent Twitter accounts added fuel to the fire.
— Will Clemente (@WClementeIII) February 9, 2023
The situation was further compounded by the news of the SEC’s investigation of the Kraken exchange. The reason cited for the investigation was the suspicion of the sale of unregistered securities.
Kraken, the second-largest U.S. exchange, is under investigation by the U.S. Securities and Exchange Commission for the sale of unregistered securities and may settle in the coming days, according to Bloomberg. https://t.co/yrxxuMdAE2
— Wu Blockchain (@WuBlockchain) February 8, 2023
Impact on Ethereum
These developments could potentially impact the growth of Ethereum, especially with the much-awaited Shanghai Upgrade. Despite this, at press time, the Ethereum network continued to set new records, with the number of non-zero addresses exceeding 94 million and the total number of ETH 2.0 staked addresses surpassing 527,000.
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However, the number of large addresses on Ethereum declined during this period. Moreover, the number of addresses holding over 10 coins reached a one-month low of 350,897 at press time. This decline in the sentiment could possibly signal a reversal of the bullish interest in Ethereum.
The SEC’s investigations and potential new rulings could impact Ethereum negatively. However, the network continued to grow at press time. It remains to be seen how the situation will impact the crypto space.