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All this will do is push US customers to self custody, and outside the regulatory perimeter of the SEC. Bravo Gary. ¯\_(ツ)_/¯
by moeadham 4y ago
All this will do is push US customers to self custody, and outside the regulatory perimeter of the SEC.
Bravo Gary. ¯\_(ツ)_/¯
- idontpost 4y ago[dead]
- the_gastropod 4y agoI doubt it will push a significant chunk of these users to self-custody. Self-custody is significantly more complicated than leaving assets on an exchange—which is why most people don't do self-custody. I'm sure this will drive some to self-custody. But I don't imagine it'll be a very large percentage.
- rhodorhoades 4y agoIs it tho? A MetaMask wallet staking directly with the protocols/ yield aggregators is easier than creating a kraken account and doing KYC verification.
- tick_tock_tick 4y ago> A MetaMask wallet staking directly with the protocols/ yield aggregators is easier than creating a kraken account and doing KYC verification. It's not easier at all which is why people don't do it....
- deleted 4y ago[deleted]
- rhodorhoades 4y agoself custody vs. centralized exchange data would be relevant here. Instead of just saying “people don’t do it”. Because people do… and I would venture to say more people do it than keep their coins on a centralized exchange.
- BitwiseFool 4y agoThat may indeed be "easier", but self-custody requires a high level of confidence in your own ability to set things up properly and securely. And equally high confidence that your machine and wallet won't be compromised. I'd also say that getting to that point is difficult, unless someone is willing to play around with a test-net and not learning with their real balance. There's definitely an appeal when it comes to having an exchange manage this all for you, even when they take a fee for doing so.
- TimJRobinson 4y agoYou can also just buy and hold a token like rETH too. This token gives you rewards from a decentralized staking network automatically. Holding a token on a hardware wallet is very easy to do these days.
- ahtihn 4y agoHow do you get the coins to stake in the first place without creating an account and doing KYC verification?
- rhodorhoades 4y agoThis may come off as… impractical… but I don’t understand why. The best way to obtain coins without going through KYC is by using the protocols. The most cost effective is running a filecoin node but there are thousands of ways of getting coins by participating in the ecosystem.
- deleted 4y ago[deleted]
- cool_dude85 4y agoThe point is to stop Kraken from offering an unregulated security, not to stop people choosing to stake their Lunas.
- matthewdgreen 4y agoI think the point is to establish some precedent that what Kraken was offering actually was an unregulated security, something that might not have been completely clear before this. I doubt that the Fed is deeply concerned about Kraken beyond that.
- nemothekid 4y ago>and outside the regulatory perimeter of the SEC. I think that's the point? The SEC doesn't want an issue where Kraken loses all the funds because they didn't actually stake anything at all and instead were investing in tulip futures.
- babyshake 4y agoAre you suggesting that exchanges might be misappropriating customer funds? I find that incredibly difficult to believe.
- nikanj 4y agohttps://www.cnbc.com/2022/12/28/ftx-used-200-million-of-customer-funds-for-two-venture-investments.html https://www.cnbc.com/2022/12/28/ftx-used-200-million-of-cust...
- birracerveza 4y agoI suppose that was sarcastic. Centralized exchanges are famous for misappropriating customer funds.
- rnk 4y agoI hope it was sarcastic. At this point, are there any exchanges that aren't doing untoward things with their customer's assets? We basically have exchanges that failed doing this and other exchanges with ambiguous descriptions of what they have done that haven't failed yet.
- zoklet-enjoyer 4y agoRight. I self custody most of my stuff, but I do stake a few coins with Kraken because the amount is relatively small and it's easier. Taking away this service is annoying.