Coinbase Defy US SEC Staking Services Ruling
On March 21, Coinbase’s chief legal officer, Paul Grewal, announced that the exchange had submitted a comment letter to the Securities and Exchange Commission in response to its petition for rulemaking on digital asset securities regulation filed last year. The exchange claims that core staking services are not securities but rather software services.
Paul Grewal went on to say that paying someone a fee for certain tasks does not constitute a securities transaction. Furthermore, the SEC’s statement on staking-as-a-service qualifying as a security contradicts the Kraken settlement. Furthermore, it does not define staking services other than those provided by Kraken.
Coinbase submitted a comment letter to the SEC, requesting clarification that core staking services are not securities. Core staking services always failed to pass the Howey test, the old methodology the SEC is trying to apply to new crypto technology, including staking.
(With inputs from Shikha Singh)
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