Coinbase Shares Down 22% Amid The SEC Crackdown On Crypto Staking
Key Points:
- Coinbase shares fell 22% as the CEO of the US-based crypto exchange Coinbase expressed an opposing perspective as the SEC crackdown on crypto staking.
- The firm stated that staking revenue accounts for a major amount of what the company refers to as blockchain incentives.
This week, US officials targeted crypto-staking services, and Coinbase shares fell 22% as Brian Armstrong, the CEO of the US-based crypto exchange Coinbase, expressed an opposing perspective as SEC crackdown on crypto staking.
Shares of the exchange began to fall after CEO Brian Armstrong stated on Wednesday that restricting crypto staking would be a bad path for US regulators. Coinbase shares fell throughout Thursday, continuing to fall into Friday’s session.
According to Nasdaq data, shares of the crypto exchange were trading at $57.09 at the closing, down approximately 23% since Monday.
On Thursday, rival exchange Kraken settled charges brought by the Securities and Exchange Commission for failing to register the offer and sale of its crypto asset staking-as-a-service program. It agreed to pay a $30 million fine, and SEC Chair Gary Gensler stated that the action against Kraken should serve as a warning shot.
The news had no effect on Coinbase’s program, according to Coinbase Chief Legal Officer Paul Grewal, who added that Coinbase’s staking services are different than Kraken’s. He then claimed in a blog post on Friday evening that staking is not a security under the US Securities Act or the Howey Test.
Staking is not a security under the US Securities Act, nor under the Howey test. 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.
In financial records, Coinbase stated that staking revenue accounts for a major amount of what company refers to as blockchain incentives. Because the corporation considers itself the principal in blockchain network transactions, it presents blockchain rewards collected on a gross basis.
In the third quarter of 2022, such blockchain awards totaled $63 million, accounting for nearly 11% of total net revenue. Analysts covering the company feel it has the potential to be a substantial revenue line in the future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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Coinbase Shares Down 22% Amid The SEC Crackdown On Crypto Staking
Key Points:
- Coinbase shares fell 22% as the CEO of the US-based crypto exchange Coinbase expressed an opposing perspective as the SEC crackdown on crypto staking.
- The firm stated that staking revenue accounts for a major amount of what the company refers to as blockchain incentives.
This week, US officials targeted crypto-staking services, and Coinbase shares fell 22% as Brian Armstrong, the CEO of the US-based crypto exchange Coinbase, expressed an opposing perspective as SEC crackdown on crypto staking.
Shares of the exchange began to fall after CEO Brian Armstrong stated on Wednesday that restricting crypto staking would be a bad path for US regulators. Coinbase shares fell throughout Thursday, continuing to fall into Friday’s session.
According to Nasdaq data, shares of the crypto exchange were trading at $57.09 at the closing, down approximately 23% since Monday.
On Thursday, rival exchange Kraken settled charges brought by the Securities and Exchange Commission for failing to register the offer and sale of its crypto asset staking-as-a-service program. It agreed to pay a $30 million fine, and SEC Chair Gary Gensler stated that the action against Kraken should serve as a warning shot.
The news had no effect on Coinbase’s program, according to Coinbase Chief Legal Officer Paul Grewal, who added that Coinbase’s staking services are different than Kraken’s. He then claimed in a blog post on Friday evening that staking is not a security under the US Securities Act or the Howey Test.
Staking is not a security under the US Securities Act, nor under the Howey test. 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.
In financial records, Coinbase stated that staking revenue accounts for a major amount of what company refers to as blockchain incentives. Because the corporation considers itself the principal in blockchain network transactions, it presents blockchain rewards collected on a gross basis.
In the third quarter of 2022, such blockchain awards totaled $63 million, accounting for nearly 11% of total net revenue. Analysts covering the company feel it has the potential to be a substantial revenue line in the future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Thana
Coincu News
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