Coinbase, one of the largest cryptocurrency exchanges in the US, has stated that the staking services offered on its platform do not constitute securities. The statements, made in the wake of the $30 million deal that Kraken, another US-based crypto exchange, completed with the US Securities and Exchange Commission (SEC), also criticizes the institution’s approach to the topic.
Coinbase Defends Its Staking-as-a-Service Program
Coinbase, a major US-based cryptocurrency exchange, has published a blog post that differentiates its staking-as-a-service program from others on the market and clarifies that, for the institution, this type of service does not constitute a value. offering.
in a blog mail Posted on Feb. 10, Paul Grewal, the company’s chief legal officer, states how getting this point of regulation wrong can affect the entire crypto industry in the country. The article explains the company’s stance on the issue, stating:
Staking is not a security under the US Securities Law, nor under the Howey test. Trying to superimpose securities law onto a process like staking does nothing to help consumers and instead imposes unnecessarily aggressive mandates that will prevent American consumers from accessing basic crypto services.
In addition, Grewal also criticized the way the US SEC is handling cryptocurrency regulation, explaining that enforcement regulation is a “poor substitute” for actual regulation.
SEC Chairman Gary Gensler Hints at More Regulatory Action
Coinbase’s position appears to be in direct opposition to the stance the US SEC has taken when it comes to centralized platforms offering cryptocurrency staking services. On February 9, the institution completed a $30 million deal with Kraken, another cryptocurrency exchange, for the unregistered sale and offer of these services to its clients.
SEC Chairman Gary Gensler has hinted that more such actions are on the way for other industry players, stating that these companies should disclose the risk associated with such activities to their clients. On February 10, in an interview on CNBC’s Squawk Box, Gensler fixed:
Other platforms should take note of this and try to comply, make proper disclosures, registration, and the like.
Coinbase offers cryptocurrency staking programs for different cryptocurrencies as part of its portfolio of services and charges a flat fee to operate these services. In a recent report, JPMorgan predicted that new investment funds coming to Ethereum after the upcoming Shanghai update are likely to go to decentralized platforms like Lido due to the different benefits they offer compared to centralized providers.
What do you think about Coinbase’s position on cryptocurrency staking programs as a service? Tell us in the comments section below.
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