Japan’s SBI Shares First Staking Rewards For ADA, DOT, & AVAX, Sparks Outcry From U.S. Crypto Investors

U.S. investors believe that regulatory clampdown is leaving the U.S. behind.

Japanese crypto exchange SBI VC Trade, a subsidiary of SBI Holdings, announced the distribution of its staking rewards to customers yesterday.

The firm made this known in a press release announcing rewards for staked Polkadot (DOT), Cardano (ADA), and Avalanche (AVAX), setting annual rates at 13.9%, 2.6%, and 5.2%, respectively. Conversely, Tezos (XTZ) holders will have to wait till March 15 for staking rewards. SBI VC Trade attributes the delay to a lag caused by “XTZ specifications.”

Notably, famous XRP influencer Crypto Eri shared the development in a tweet yesterday.

2/2 The Link to the Release:https://t.co/7fGRvdfk1P

— 🌸Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) February 15, 2023

The latest development has sparked outcries among crypto investors in the United States who believe they are being locked out of these opportunities due to the U.S. Securities and Exchange Commission’s latest crypto enforcement actions. 

One user called on lawmakers to rein in the agency, asserting that Japanese regulators are handling things better.

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Another described the SEC as a “joke,” asserting that the nascent market was progressing abroad.

Recall that the SEC recently forced Kraken to shut down its staking service for U.S. investors as part of a settlement agreement that will see the long-standing crypto exchange pay about $30 million in penalties. Notably, the regulator alleges that the staking service represents an unregistered security.

In a statement on the settlement, SEC chair Gary Gensler put the industry on notice asserting that he expects companies providing this service to register with the SEC. Coinbase, the U.S.’s largest crypto exchange, has stated that its staking service does not represent unregistered security, with Brian Armstrong, the company’s chief executive officer, saying the crypto exchange is willing to defend its stance in court.

It is worth noting that Ripple Chief Executive Officer Brad Garlinghouse responding to the latest SEC crackdown, pointed out that regions outside the U.S. were moving toward regulatory clarity for crypto.

A Twitter thread from @NoodleofBinance, a widely followed crypto account, yesterday disclosed that Hong Kong had revealed plans to lift its embargo on retail crypto trading by June 1. Recall that a report by The Crypto Basic hinted at this development last October.

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