BTCS Inc. Clarifies Non-Custodial Staking Amid SEC Actions

Overview of BTCS's Staking Model

BTCS Inc. has clarified the distinctions between its non-custodial staking model and those under scrutiny by the SEC, particularly in relation to Coinbase's staking operations. BTCS employs a "non-custodial staking" or "staking-as-a-service" model that stands apart from Coinbase's custodial practices, which involve holding users' private keys.

Key Differences in Staking Practices

The primary difference lies in BTCS's non-custodial approach, which contrasts with Coinbase and Kraken's custodial models. Unlike these companies, BTCS does not take custody of user crypto assets, pool them with others, or promise profits from the efforts of others. This distinction aligns with the Howey test, which is often used to determine whether an activity constitutes a security.

BTCS's Transparency and Dedication

Charles Allen, CEO of BTCS, emphasizes the importance of transparency in the crypto industry, especially after recent controversies such as the FTX collapse. Allen advocates for educating regulators and the public to ensure that regulations foster innovation in blockchain technology.

The StakeSeeker Platform

BTCS's proprietary platform, StakeSeeker, exemplifies their commitment to a secure and compliant staking model. StakeSeeker offers users the ability to monitor and grow their crypto portfolios through innovative analytics and a non-custodial process. Users can link their portfolios across various platforms and participate in network consensus mechanisms directly.

BTCS's Role in the Blockchain Industry

As a pioneer in the blockchain sector, BTCS has operated since 2014, focusing on blockchain infrastructure and staking. The company secures and operates validator nodes on next-generation blockchain networks, earning rewards through a non-custodial model. This approach not only supports user engagement but also offers a scalable business opportunity for BTCS with minimal additional costs.