Against the backdrop of changing U.S. cryptocurrency regulations, Bitstamp, one of the oldest digital asset exchanges in the industry, is making a major move to stop offering Ethereum (ETH) pledge services to U.S. customers.。The decision is the result of increased regulatory dynamics in the country, particularly with regard to cryptocurrency pledge services.。

Starting September 25, 2023, U.S. users will no longer be able to pledge ETH on the platform, the exchange said.。Until the deadline, users can continue to receive pledged rewards, which and the principal are eventually credited to the user's Bitstamp master account balance。However, it may take several days for these changes to be fully reflected in a user's account.。

Bitstamp under regulatory pressure

Following similar measures by other crypto-asset exchanges, regulatory pressure in the United States led Bitstamp to stop its pledge service in the country.。As Bobby Zagotta, Bitstamp's US CEO and Global Chief Commercial Officer, put it, the "current regulatory dynamics" in the US drove this strategic decision.。

Bitstamp's move to halt ETH pledge service echoes broader trend in industry。In February, rival cryptocurrency exchange Kraken suspended its pledge products in the United States, opting to pay $30 million to settle the SEC's charges.。In addition, the uncertainty of the regulatory environment has led major players to re-evaluate their products, as exemplified by Coinbase, which has challenged the reasonableness of lawsuits filed by regulators.。

Response to SEC Review

In light of this move, Bitstamp joined the list of countries that cannot use the pledge service, including Canada, Japan, Singapore and the United Kingdom.。The decision is in line with recent legal developments in the United States, where the exchange had previously suspended trading in seven altcoins.。

More than two weeks ago, it was reported that Bitstamp had announced a moratorium on token trading such as Axie Infinity (AXS), Decentraland (MANA), Chiliz (CHZ), Sandbox (SAND) and Solana (SOL).。The action was driven by the SEC, which classified certain tokens as securities in recent lawsuits against major exchanges such as Binance and Coinbase.。

This month, Bitstamp unveiled funding plans to push for the launch of derivatives trading in Europe and to expand its presence in the UK and Asian markets.。Bitstamp began seeking additional funding two months ago, and Galaxy Digital Holdings was involved in the fundraiser as a consultant.。However, the exchange stressed that it was not prepared to sell。