Coinbase CEO Brian Armstrong has recently opened up about its staking services and what the exchange would do regarding them if they were threatened by regulation.
Following the SEC’s accusations, cryptocurrency exchange Kraken reportedly had to shut down its cryptocurrency-staking operations. Kraken was additionally required to pay $30 million in settlement fees.
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The exchange’s staking program, which enables investors to receive a yield, was not registered, according to the SEC. According to Gensler, any of these exchanges can quickly register by completing a form on the SEC’s website.
Coinbase CEO will defend their cryptocurrency staking in the court
The SEC has been eyeing cryptocurrency businesses ever since the Ripple vs. SEC case. The fall of FTX has ramped up the scrutiny. Coinbase also recently stated in its blog that its staking is not a security.
“Trying to superimpose securities law onto a process like staking doesn’t help consumers at all and instead imposes unnecessarily aggressive mandates that will prevent US consumers from accessing basic crypto services and push users to offshore, unregulated platforms.”
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Kraken CEO Jesse Powell also recently commented on Gary Gensler’s recent speech on CNBC about registering their staking services on their website. Cardano’s founder, Charles Hoskinson, also recently commented that what Gensler said was a lie.