Crypto investors witnessed a surge in the price of Lido (LDO) tokens after rumors of the Ethereum staking ban spread all over the internet. The Lido DAO token rose by more than 5 percent yesterday, reaching an all-time high since August last year. This has raised several questions from investors, such as, "should one invest in Lido (LDO)?"
The rumor of the Securities and Exchange Commission banning Ethereum staking spread through the internet when Coinbase co-founder made a surprising statement that the US Securities and Exchange Commission was planning to ban the staking of Ethereum. He says, "We’re hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that’s not the case as I believe it would be a terrible path for the U.S. if that were allowed to happen."
However, Brian Armstrong didn't mention the person who leaked such information to him or why they were trying to make such a move. He just mentioned that cryptocurrencies are becoming a" matter of national security" to the US, leading to the plans to ban Ethereum staking.
Can SEC Ban Ethereum Staking?
Despite the rumor of Ethereum staking being banned by the Securities and Exchange Commission, a close review shows the commission doesn't have such powers to do so. Only the United States Congress can decide if they should ban Ethereum staking or the cryptocurrency itself.
The only power that SEC has in the matter is that they can make the developers of Ethereum undergo some sought of registration before permitting them to carry out certain activities in the US. In most cases, only centralized entities such as Binance or Coinbase face restrictions such as this.
While speaking about the matter, the Coinbase co-founder did mention that the SEC might actually ban a type of Ethereum staking. He said that the SEC was planning to ban retail Ethereum staking. Banning retail staking means most people won't afford the funds to stake Ethereum. Only those who make more than $200,000 annually can participate in Ethereum staking.
This discovery by the public has caused controversy, as many were angry about why SEC would be trying to make such laws. According to many, it wasn't right to create a discriminatory environment for crypto enthusiasts.
Should One Invest in Lido (LDO)?
Since the rumor spread that the SEC would be banning Ethereum staking, most of the attention has shifted to Lido (LDO), as many investors are waiting for the go-ahead call to invest in the token. It is worth noting that whatever is written here is based on opinion, not a recommendation or financial advice.
Although the Lido DAO token has made incredible gains since the rumor spread, many experts don't still consider the token a good one. Its price rose by more than 5% when the rumor broke out, reaching an all-time high since August last year.
However, many are not sure of its sustainability. Since the rumor, which the co-founder of Coinbase spread, is not correct, Lido's (LDO) price will soon fall due to less demand.