GameStop to End Support of Its Crypto Wallet on Nov. 1

Man playing a video game on his computer.

(Image credit: Getty Images)

Video game retailer GameStop says it will end support of its crypto wallet offering on Nov. 1, citing “regulatory uncertainty of the crypto space.”

The company, which posted notification of the move on its GameStop Wallet homepage, said it will remove its iOS and Chrome Extension wallets from the market and advised customers to access their Secret Passphrase, a security feature, by Oct. 1. Customers with access to the feature have the ability to recover their account in any compatible wallet, GameStop said.

Currently, only MetaMask and WalletConnect are supported wallet providers.

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In December 2022, GameStop hinted in a conference call on its third-quarter results that it plans to distance itself from the crypto space.

Minimizing risk

On that call, GameStop’s then-CEO Matt Furlong said the company “has proactively minimized exposure to cryptocurrency risk throughout the year and does not currently hold a material balance of any token. Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in the space.”

The company launched the crypto wallet offering in May 2022 “to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (NFTs) across decentralized apps without having to leave their web browsers.”

GameStop did not immediately respond to Kiplinger's request for comment.

The move comes as the SEC has increased scrutiny of the crypto space. The agency recently sued Coinbase and Binance, charging the world’s two largest crypto exchanges with violations of U.S. securities laws.

In a June 6 interview with CNBC, SEC Chairman Gary Gensler weighed in on the crypto market.

“Look, we don’t need more digital currency,” he said. “We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen; they’re all digital right now.”

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.