Uphold ends staking for US customers following SEC guidance

Cryptocurrency exchange Uphold, which is integrated into the Brave Rewards program in the Brave browser, has sent an email to customers stating that it will be discontinuing its staking service to U.S. customers on April 27, 2023.

Following the SEC’s recent moves to crack down on cryptocurrency-related products and companies, Uphold has preemptively terminated its staking service after announcing that it “cannot ignore recent SEC guidance on staking.” .

Uphold has not heard from the SEC and has confirmed that it is terminating its US staking service “until there is more legal and regulatory clarity.”

After March 22nd, user funds will be de-staked by Uphold and will be accessible from now until April 27th, 2023. The amount of time it takes for funds to become available depends on the unlimited period of the individual blockchain.

Support remains strong amid US exit

Crypto projects are leaving the US due to uncertainty over the regulatory environment. Nexo made a similar announcement in December, citing a “lack of regulatory clarity” as the reason. Also, SushiSwap, Coinbase, Justin Sun, and his FTX-related celebrities such as Lindsay Lohan, Jake Paul, Soulja Boy, Akon, and Ne-Yo have all been contacted by the SEC this week about their crypto-related activity. I have been contacted. .

On March 23, Circle CEO Jeremy Allaire commented on the apparent SEC crackdown, stating, “There appears to be a massive risk-off from the US dollar exposed to US banking and US regulatory risk. ‘ said.

The future of the non-Bitcoin crypto industry looks uncertain inside the United States in 2023. Following the demise of FTX, there are now countless actions by the SEC to tighten regulations on companies and individuals offering crypto, or web3, services in the United States. Rather than fight the SEC, however, some companies appear to be choosing to close U.S. markets until the regulation and legal framework become more transparent.

However, Uphold remains resolute in the face of regulatory uncertainty and will not currently leave the United States. The company plans to continue offering other services in the country.

An Uphold spokesperson told CryptoSlate in an email:

Uphold never leaves the United States. We remain active, well regulated, support millions of US customers, and have no plans to leave the US market. He has only removed one of the many product features we offer in the US.

*Updated article to clarify that Uphold will not leave the United States and added a response from an Uphold spokesperson.