• Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
Subscribe
  • Login
  • Register
No Result
View All Result
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
No Result
View All Result
No Result
View All Result

Coinbase to Fight SEC in Court Over Staking

10/02/2023 12:11
No comments
Paul Grewal speaking to students, Oct 2022

Paul Grewal speaking to students, Oct 2022

“We don’t play games,” Paul Grewal, the Chief Legal Officer at Coinbase, stated after the US  Securities and Exchanges Commission (SEC) announced a settlement with Kraken over staking.

“The public shouldn’t have to parse complaints in federal court to understand what a regulator expects,” Grewal added.

SEC stated that part of staking rewards at Kraken were due to “Kraken’s strategies to obtain regular investment returns and payouts.”

“These products are basically yield products,” Grewal said, pointing out that at Coinbase it is straight staking. “Our customers have a right to their rewards. We can’t just decide not to pay any rewards at all.”

Jesse Powell, the founder of Kraken, said he thinks these differences are minor. “I don’t think that any minor differences matter to the SEC, which views all forms of custodial staking as problematic.”

Grewal however has made it clear that in his view, managed staking is not a security, stating:

“Staking is not a security. Validators form no horizontal community or commonality. There’s no vertical commonality, either. Validators don’t expect rewards from significant managerial efforts of other validators–they expect rewards primarily from their own efforts and funds.”

Kraken has stopped providing staking services to US customers, whether rich or not, with it technically currently unclear how they stop it as such because currently you can not unlock ethereum staking until the unlock upgrade sometime next month potentially.

If Kraken actually stops therefore, they will be slashed and their customers will lose a lot of money, making this a very bad timing from SEC.

It may well be that they’re stopping it for new customers, while staking offers at Kraken continue as usual in Europe and the rest of the world.

For Coinbase, they continue in US too. This is a publicly traded company and their Chief Legal Officer is of the view that staking is not a security, so Coinbase has no choice but to go to court if SEC approaches, unless they want action by their shareholders.

Kraken is not yet publicly traded. That they opted for settlement however, considering the crypto industry is and has been since 2018 under a regulatory attack, and considering settlements are SEC’s strategy of making law in effect while bypassing the courts, is surprising.

“Risk-adjusted returns,” was Powell’s reply when asked why he did not fight. That calculation was based on such returns just for his company, rather than the entire crypto industry, with Powell stating:

“Bigger balance sheet wouldn’t hurt either. They picked the bottom of the bear market, waited for us to do a 30% layoff. They have all our financials, lots of leverage. Maybe we looked weak.”

Coinbase has billions in cash, but the current SEC chair is following a strategy ‘pioneered’ by none other than Vladimir Putin. That is managed chaos.

Rather than opening proposed rulings for public consultation with a carefully thought out guidance then provided, SEC chooses to sow confusion, fear, and chaos through which they aim to effectively break their subject and make them subdue.

A strategy of subjugation in the open daylight in modern United States. “We won’t innovate for you,” peasants. We will force one rule for the rich, and another for the rest.

Coinbase and Silicon Valley however knows very well what’s going on so hopefully here too this strategy of managed chaos will spectacularly backfire as it did for Bush and the now very isolated Putin.

Related Posts

Arbitrum opening price, March 2023

Arbitrum Gifts $1.7 Billion to the Public

Bitcoin art, March 2023

Stocks Jump 2%, Bitcoin Close to Touching $29,000

Coinbase Dives 15%

Goldman Sachs and JP Morgan Can’t Survive Bank Run Says NBER Paper, Fail Stress Test

Load More
  • Trending
  • Comments
  • Latest
The National Bureau of Economic Research

Goldman Sachs and JP Morgan Can’t Survive Bank Run Says NBER Paper, Fail Stress Test

Paul Grewal, Coinbase's Chief Legal Officer

We Asked SEC to Register, They Sent Us a Wells Notice Says Coinbase

NY District Court

XRP Hypes Ahead of Court Decision

Bitcoin and asset prices dive, March 2023

Bitcoin and Stocks Dip on Fed Hikes, But is it a Fakeout?

Arbitrum opening price, March 2023

Arbitrum Gifts $1.7 Billion to the Public

Bitcoin art, March 2023

Stocks Jump 2%, Bitcoin Close to Touching $29,000

Brian Armstrong getting ready for court. The words are a joke, but the picture is him for real, March 2023

Coinbase Dives 15%

The National Bureau of Economic Research

Goldman Sachs and JP Morgan Can’t Survive Bank Run Says NBER Paper, Fail Stress Test

Comments

Latest News

  • Arbitrum Gifts $1.7 Billion to the Public
  • Stocks Jump 2%, Bitcoin Close to Touching $29,000
  • Coinbase Dives 15%

About Trustnodes

Terms of Service

Privacy Policy

Our Ethics and Values

Trustnodes Newsletter

(You have to be a paid subscriber)

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

Welcome Back!

Login to your account below

Authenticate with MetaMask Loading...

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?