I wonder how pro-regulation Binance still is after the SEC released a video specifically mentioning Binance “Earn” to be next on the chopping block.

Whirlwind of FUD today as Kraken’s staking rewards in the US got nerfed by the SEC. What was interesting was the cringe like hell video Gary Gensler released after the announcement. The video aimed to explain his reasoning as to why they are cracking down on CEX staking programs. As much as this sub’s knee jerk reaction will be, ultimately this is what regulation looks like.

A couple things to clear up is that the SEC only has jurisdiction in the United States. It means only the US based users of exchanges will be affected by this crackdown on exchange staking. Users can still stake in their own wallets and on DEXs. Now, after discovering that 85% of this last bear market rally were US institutions, it means the market will react chaotically until people stop leaving their funds on exchanges and actually do crypto like it was intended to be. Decentralisation shouldn’t just be a buzz word.

Gary then went on to explain all the various staking terms used by exchanges, specifically “Earn” as an alternate name for staking. As far as I know, Binance Earn is one of the largest CEX staking programs out there. So many people parroted “If Binance fails, BTC would be done and head to sub 2k” level again. What we didn’t expect was just the staking layer to be nerfed. That is ALOT of revenue stream for Binance and Coinbase alike. I can understand why Brian Armstrong from Coinbase started trying to rally the world against this decision by the SEC. The thing is this. This move is helping end users and decentralisation of crypto as a whole. It only impacts the exchange’s revenue stream and power over certain tokens.

Take this as you will, crypto will live on.

TL;DR: Binance is probably eating their words after Gary came and kicked them in the balls.