“I think this is good for decentralization,” said Ben Edgington, a product manager at Ethereum research and development firm ConsenSys. On a proof-of-stake network like Ethereum, one’s stake equates to their power over the network; if one party accounts for enough of Ethereum’s stake (around 50-60%), they can theoretically slow it down or block certain kinds of transactions. “In terms of the protocol and the health of the protocol, having a large centralized entity controlling a lot of the stake is not ideal,” said Edgington.
How the SEC Could Reshape Ethereum’s Staking Landscape for the Better
