The latest development was the enforcement action by the US Securities and Exchange Commission (SEC) against Kraken, a popular crypto exchange. This resulted in the termination of its staking program for US residents and a fine of $30 million.
However, not everyone agrees with this view. Crypto investor Nick Carter believes that crypto Protocol will benefit from the situation. Because the main failure of proof-of-stake is for exchanges to become master nodes.
While this may sound great in theory, Omid Malekan, an assistant professor at Columbia Business School, has a different perspective. In his opinion, Carter's idea would only result in a better world, but he also notes:
“It is only a matter of time until regulators go after liquid staking protocols. Eventually, only whales and institutions (accredited investors) will be able to stake legally, which is even worse for decentralization.
