Coinbase far from out of the woods? The court decision in the case between Ripple (XRP) to the U.S. regulator seemed to go in the direction of exchanges, such as Coinbase. But that doesn’t mean that crypto platforms have gone out of business.regulatory impasse in which they find themselves. This is illustrated by the lack of confidence that prevails in many of the United States. USA.
Coinbase staking service: mistrust is the order of the day in the USA
At the beginning of June, the SEC (Securities Exchange Commission) by Gary Gensler sued exchanges Binance and Coinbase. The regulator accuses the platforms of offering services similar to unregistered financial securities (securities in English). The repercussions of these attacks continue to plague these crypto platforms in July, despite the recent court ruling on the XRP token.
Indeed, 10 US states have filed legal action against the exchange. They are asking Coinbase to stop its staking program within their jurisdiction. Coinbase defended itself, but nothing was done.
» [Le staking n’est pas une security, c’est] a full-fledged way to keep the crypto economy running for hundreds of millions of users worldwide. »
Coinbase
The crypto exchange is in talks with regulators of these jurisdictions. Its aim is to try to retain its staking services in these countries.
« Staking is not an atypical or complex financial product (…) In fact, it’s not a financial service at all. Whether a user stakes [ses cryptos] by himself or via our services [ne change rien]he remains the sole owner of his cryptos at all times. Unlike lending [le prêt de cryptos]for example, there’s no risk that the borrower won’t be able to ‘repay’. »
Coinbase
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Staking services shut down in 4 US states
Nothing could be done. Despite these justifications, Coinbase is obliged to stop its services in four states: California, New Jersey, South Carolina and Wisconsin.
« Customers who stak [leurs cryptos] prior to these changes are not affected. (…) Impacted customers have received an email with more specific information about their situation. All users can visit our help center to learn about the changes coming in the next few weeks. »
Coinbase
For analysts at the firm Berenberg Capital Marketsthe shutdown of services in four US states could lead to increased mistrust towards staking services in general:
« We believe this news will serve as a reminder to investors who believe that the risk on COIN [de Coinbase] has significantly decreased since last week’s court ruling on Ripple. »
For Berenberg Capital, Coinbase’s staking services remain subject to the qualification of securities by a judge in a potential SEC case.
Coinbase seemed to have pulled its head out of the brambles this past week. However, the exchange is clearly still entangled in the thorny regulatory thicket. SEC won’t give up its tug-of-war with the crypto sector. And in this fight, the exchanges are on the front line. It will therefore be many months, if not years, before the sector is fully regulated. We hope that the impetus for innovation in this field of tech will not be entirely stifled by freedom-destroying regulations under the guise of « investor protection ».
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