Coinbase reminds the regulator of the significant economic consequences of its actions, urging it to take a different approach to the treatment of crypto staking services.
Highlights
- U.S.-based crypto exchange Coinbase has written a petition to the Securities and Exchange Commission.
- It explains why staking can’t be universally labeled as securities.
- The firm is focused on how securities law treats services related to validating proof-of-stake protocols.
- The petition was written in response to the SEC’s February crackdown on Kraken’s staking-as-a-service program.
- Users retain full authority over their assets, with the ability to unstake them, sell, hypothecate, vote, pledge or otherwise dispose of them independent of the service provider.
- The company reminds the regulators about the significant economic consequences of its actions on the digital asset ecosystem.
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