The U.S. Securities and Exchange Commission (SEC) tightly regulates digital currencies and crypto exchanges like Coinbase.Currently in litigation with Ripple Labs Regarding the description of illegal sales of bearer securitiesThe company said it made such sales to investors without registering them as securities.
In another case, the Kraken, a popular cryptocurrency exchange, was brought under commission supervision. Regarding sales of unregistered investment productsDuring the life of these events, another known digital exchange platform, Coinbase, submitted Comment letter to SEC requesting clarification that core staking services are not securities.
Coinbase Disputes US SEC Statement
Coinbase Chief Legal Officer Paul Grewal said: said On March 21st, it was revealed that the company had sent a letter to the US SEC. Exchanges aim to learn the SEC’s stance on securities regulation of cryptocurrencies.
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Coinbase says its core staking service is not securities, but the various software services it offers. According to Grewal, paying someone a fee does not make the transaction secure.
He further said that the SEC’s declaration that staking-as-a-service is a security is inconsistent with the Kraken settlement.
COIN price is up by over 5% on the chart l Source: Tradingview.com
Meanwhile, core staking has failed several times to pass the Howie test’s old methodology. As such, exchanges are demanding that the SEC recognize that core staking services are not securities.
The outcome of this recent dispute between Coinbase and the SEC could have significant ramifications for the entire cryptocurrency industry. The industry is watching closely how this situation unfolds and whether it could lead to more regulation or legal action against other cryptocurrency companies.
Previous disputes between Coinbase and SEC
The dispute between the SEC and cryptocurrency exchanges has been going on for a long time.and blog In its response to the SEC securities ruling, Coinbase said its lend program is not an investment contract or security.
Lend programs typically allow users to earn interest on specific assets held on the platform. Coinbase further states that Lend is not a security, as it is just a product offered to eligible customers and does not involve any financial investment or common business.
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The SEC has sent a clear notice to Coinbase, saying it intends to take legal action against the company regarding the Lend program. I claimed.
Coinbase’s response goes against the SEC’s warning, and it remains to be seen how regulators will react to the company’s stance.
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