• The cryptocurrency market has seen a lot of twists and turns over the previous 24 hours, with traders liquidating almost $144 million in the market.
• Brian Armstrong, the CEO of Coinbase, tweeted about the U.S. Securities and Exchange Commission’s desire to outlaw bitcoin staking for domestic retail consumers.
• Staking is the process of keeping bitcoin assets locked up for a defined period of time to keep a blockchain functional and users are rewarded by staking their existing cryptocurrency.
Crypto Market Experiences Significant Liquidations
The cryptocurrency market has experienced significant liquidation over the past 24 hours as more than 63K traders liquidated almost $144 million in total. Bybit suffered the largest single liquidation order amounting to $2.7 million. This led to an overall market capitalization decline of $1.05 trillion due to these investor actions. Short traders have once again been hit hardest as Bitcoin’s recent surge above $24,000 resulted in heavy losses for them.
SEC Intentional Ban on Staking Altcoins
Brian Armstrong, CEO of Coinbase, recently took to Twitter regarding news that the US Securities and Exchange Commission (SEC) intends to ban crypto staking for domestic retail customers in America. Armstrong stated that such an act would be detrimental for innovation and national security interests in America as it would hinder scalability improvements while increasing carbon emissions from networks that rely on proof-of-stake consensus algorithms such as Ethereum’s blockchain network.
Staking is a process whereby users lock up their cryptocurrencies for a pre-determined period in order to keep blockchains functional and secure; this is usually done through proof-of-stake consensus algorithms like Ethereum’s blockchain network which rewards users who stake their coins via incentives or rewards paid out after predetermined periods of time upon completion of successful transactions within networks they participate in by providing liquidity or other forms of support services necessary for proper functioning of blockchains processes at all times during its usage span regardless if it is public or private access granted blockchains .
Armstrong concluded his series of tweets by making a plea for clarity within industry rules and regulations so that innovation can be preserved alongside consumer protection measures with regards to national security interests within America specifically when it comes to matters relating cryptocurrencies usage domestically by citizens resident within America itself regardless if they are institutional investors or otherwise .
The impact this news has had on markets cannot be understated as short traders have faced heavy losses due to Bitcoin reaching heights beyond what was expected leading many investors towards liquidating positions held within the cryptocurrency marketplace dropping market capitalization levels significantly henceforth leading into further uncertainty concerning future events that may affect price action moving forward but only time will tell how things play out eventually given current circumstances unfolding around us at present .