Coinbase shares fall 22% amid the SEC crackdown on crypto staking
Key Points: Coinbase shares fell 22% after the CEO of the US-based cryptocurrency exchange Coinbase stated an opposing view to the SEC crackdown against crypto staking.
According to the firm, staking revenue accounts in large part of what it calls “blockchain incentives”.
Coinbase shares fell throughout Thursday and Friday, as US officials targeted crypto-staking service providers. Coinbase shares dropped throughout Thursday and Friday, with the slide continuing into Friday’s session. It paid a $30 million penalty. SEC Chair Gary Gensler said that the action against Kraken did not affect Coinbase’s program. Paul Grewal, Chief Legal Officer at Coinbase, stated that Coinbase’s staking services were different from Kraken’s. In a blog post, he claimed that staking was not a security according to the US Securities Act and the Howey Test.
Staking is not considered a security under the US Securities Act or the Howey test. Staking is not a security. Trying to impose securities law on a process like this doesn’t help consumers. Instead, it imposes unnecessarily aggressive mandates which will stop US consumers from accessing basic crypto services. It will also push them to unregulated offshore platforms.
Coinbase reported in financial records that staking revenue accounts to a large amount of what the company calls “blockchain incentives”. Coinbase stated that staking revenue accounts for a significant amount of what it calls “blockchain incentives”. This is because the corporation considers itself to be the principal in blockchain network transactions. It also presents blockchain rewards on a gross basis, accounting for almost 11% of total net revenues. Analysts believe it could be a significant revenue stream in the future. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuThanaCoincu NewsTags: CoinbaseCoinbase CEOcoinbase exchangeCoinbase GlobalCoinbase shareCoinbase sharesCoinbase Stock