Uphold Relaunches Crypto Staking Services in the United States, Citing a More Favorable Regulatory Environment

Uphold has relaunched its crypto staking services in the United States, citing a more favorable regulatory environment.

Key Takeaways:

* Uphold has relaunched its crypto staking services in the United States, as the regulatory climate appears more favorable.

* The company will allow US customers to stake 19 cryptocurrencies, including Ethereum (ETH), Cosmos (ATOM), andPolkadot (DOT), with weekly rewards paid out in the same asset.

* This follows the SEC’s recent shift in cases, dropping several suits against crypto firms, such as its case against Coinbase (NASDAQ:COIN).

CEO Simon McLoughlin: "We are excited to announce the relaunch of our crypto staking services for US customers. We will be offering some of the most popular coins for staking, including ETH, ATOM, DOT, and many more.

"Uphold initially paused its crypto staking services in 2023 due to the prevailing regulatory uncertainty and the U.S. Securities and Exchange Commission’s (SEC) actions. At the time, the regulator was largely focused on crypto-related cases, and it imposed a $30 million fine on Kraken for its crypto staking program.

"In 2023, the SEC argued that several staking providers lacked transparency in asset protection and disclosures. Furthermore, the regulator claimed that crypto firms did not register their offerings with the SEC before selling them to the public.

"However, in recent months, the SEC has dropped several cases against crypto firms. For instance, the regulator dropped its case against Coinbase after several months of litigation.

"Moreover, the SEC has shifted its approach to crypto firms. Previously, the SEC sued crypto firms for selling unregistered securities. Still, now, the regulator is reportedly encouraging crypto firms to register their offerings voluntarily.

"This shift in strategy comes as the agency faces criticism for its slow progress in registering crypto products. Despite the growing industry and increasing institutional interest in cryptocurrencies, only two Bitcoin (BTC) ETFs have been approved so far.

"This fact has led some to believe that the SEC is purposely delaying the approval of crypto products to discourage broader adoption.

"Now, however, the SEC seems intent on taking a more active role in the crypto sector.

"This shift in strategy may be attributed to the new leadership at the agency. Since 2021, Chair Gary Gensler has been making an effort to forge closer ties with the crypto industry.

"Despite his stated goal of "open the door wider," Gensler has been a subject of contention within the crypto industry. Some view him as an ally in navigating the complex regulatory landscape. In contrast, others criticize his approach as stifling innovation and hindering the industry’s growth.

"However, those who know Gensler personally attest to his passion for financial markets and his deep understanding of the intricacies of the industry.

"This passion is evident in his work at the Commodity Futures Trading Commission (CFTC) before joining the SEC. At the CFTC, Gensler played a pivotal role in expanding the role of the agency in overseeing derivatives markets.

"His experience at the CFTC, combined with his expertise in financial institutions from his time at Harvard University, makes him uniquely qualified to navigate the challenges facing the crypto sector.

"As the SEC continues to adjust its strategy, firms like Uphold are preparing to offer new products and services to customers in the U.S.

"This move signals a significant step forward in the evolving relationship between crypto firms and regulators. With a more favorable regulatory environment and the increasing demand for crypto products, the industry is poised for further growth in the years to come."