Will Coinbase’s Clarity Help Ethereum Stakers?

Coinbase has, in the last few days, become the center of attention. The FUD was stirred up by the SEC’s investigation of its biggest competitor, Kraken. And now that Kraken’s suspicion bore fruits and they were slapped with a fine, Coinbase is in the spotlight. 

However, according to Coinbase, staking is not a breach of the Securities Act or even the Howey Test. More importantly, Coinbase stated that forcing the Securities Act on a function such as staking will be detrimental to the users. This form of regulation by enforcement could push US users to unregulated offshore markets. 

Ethereum’s Network and the SEC

As much as these new development are happening before the Shanghai Upgrade, Ethereum validators and the ETH network remains undeterred. And according to Staking Rewards, so far, the number of validators on the Ethereum network is still on the rise. More specifically, the ETH network has witnessed a growth of 3.5% in the last 30 days. 

The rising revenue generated is one reason why the number of validators keeps increasing despite the negative press around staking. In the past month alone, validators created a revenue increase of 32.81%. Additionally, the overall ETH that was being staked has also increased. Currently, roughly 14% of the overall ETH is being staked, and this number could change after the Shanghai upgrade. Most of the ETH is staked through Lido and other centralized exchanges. 

However, even though ETH staking continues to grow, validators and the general crypto world seem pessimistic about ETH’s future. The number of traders opening a short position on this crypto has also significantly increased to around 51%. That said, ensuring you are on the right side of the market is crucial. But before investing in crypto, remember that this is a volatile market, and one strong move on the opposite could easily wipe out your account, primarily when operating without stop losses. So trade safely!