![]() The exchange also references its previously submitted petition that deeply implored the "Digital Asset Securities Regulation" topic. Hence, Coinbase urges the SEC to provide a "path to workable registration" and encourages the SEC to consider how that "framework should apply to any staking services that do constitute an offering of securities." The US-based exchange adds that there are "no established" processes or regulations that squarely fit the staking services. The exchange also notes that there are staking services that are not securities, and there are some that could be viewed as securities. In its efforts to help the Commission, Coinbase notes its efforts made on December 18, 2019, July 14, 2020, on August 20, 2020, in explaining how these staking services work and why they do not constitute securities. ![]() and as refined over the years.”īoth the black letter law of the "Howey test" as well as the policy and regulatory concerns underlying that analysis we find that core staking services neither meet the test as a matter of law, nor present the risks the federal securities laws were designed to mitigate. The poster child for crypto exchanges in the US further argues that staking services do not fit the definition of a securities offering “when applying the analysis laid out in the Supreme Court case, SEC v. A number of different models exist and while some might be categorized as offering an investment contract, core staking services that we describe in this letter are not." Coinbase urges SEC to provide clear rules on crypto stakingĬoinbase asked the SEC to provide rules and guidelines to staking and other complex aspects of the cryptocurrency industry in its recent letter. The letter dated March 20, 2023, addresses key pain points that many service providers in the crypto industry are facing. US-based crypto exchange Coinbase sought clarification regarding the crypto staking services via its letter to the US Securities and Exchange Commission (SEC). Coinbase argues that the exchange provided detailed presentations on staking services as early as 2019, leaving ample room for formal guidance.The exchange explained that staking services fail every single prong of the Howey test, therefore, cannot be treated as securities.Coinbase submitted a comment letter to the US financial regulator asking for clarification on core staking services.
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