Overview

• Jacob Blish, head of business development at the decentralized autonomous organization (DAO) that runs Lido Finance, said the SEC’s enforcement actions are likely a „net benefit“ for decentralized liquid staking providers.
• Decentralized staking platforms like Lido act as the „plumbing“ required in a staking service, offering users full control over their assets.
• Kraken recently settled with the SEC and closed its staking service in the U.S., while there is still uncertainty regarding the decision-making process of the SEC.

Decentralized Staking Platforms

Jacob Blish, head of business development at the decentralized autonomous organization (DAO) that runs Lido Finance, said that if the SEC bans U.S. citizens from interacting with any staking protocols, it could hurt both investors and contributors. He added that an outright ban on crypto staking participation could not only stop users from staking assets but could also potentially force contributors to abandon projects.

Decentralized staking platforms like Lido act as the „plumbing“ required in a staking service. These platforms offer a software service which allows users to have full control over their assets; this differs from how centralized exchanges work where they hand over control of their assets to an exchange instead.

SEC Enforcement Action Against Kraken Exchange

Kraken recently settled with the SEC for $30 million and closed its staking service in the U.S., as stated by Bloomberg News reportage. The SEC claimed that Kraken provided unregistered securities through its stacking services according to Blish’s comments following this action taken against them by the regulatory body .

Uncertainty Around The Decision Making Process Of The SEC

Blish noted that there is uncertainty around what decision will be made by regulators involved in this situation and expressed his disappointment with having lack of transparency when asked about it stating: “The most disappointing thing is we as an industry keep getting asked for transparency, but then me as a U.S citizen I get no transparency and how [the regulatory] decision-making process is going”

Conclusion

In conclusion, it appears as though Blish believes that while there are risks associated with this enforcement action taken against Kraken from an investment standpoint; overall he sees it being beneficial for decentralised liquid stacking providers if it isn’t banned completely for US citizens participating in these activities or investing into them .