The Coinbase share shrinks by 14 % after taking the SEC in crypto staking

The Coinbase share shrinks by 14 % after taking the SEC in crypto staking

The share of the leading US cryptocurrency exchange Coinbase (Coin) has suffered its greatest daily loss for seven months after the State State Supervisory Authority (SEC) had forced the competing stock exchange to stop their crypto staking services in a 30 million dollar agreement.

The loss of value of Coin is due to the fact that Coinbase generates considerable income from its crypto staking services and the SEC supposedly acts against such services.

coin crashes by more than 14 %

Coin closed on Thursday at $ 59.63 compared to the day of the day of $ 68.51 and is traded at $ 58.99 at the time of the writing of this article, which signals a burglary by 14.13 %.

The last time the share suffered such a big loss on a trading day was in July when Coinbase was examined by the SEC for its cryptocurrency naps. The regulatory authority checked whether the stock exchange allowed US customers to act crypto tokens that should have been registered as securities.

SEC pursues crypto-staking service provider

remember that octopus has reached settlement deal with the SEC yesterday after months of official investigations on non-registered securities that are offered as staking services. The stock exchange agreed to pay $ 30 million in degorable and civil law punishments and set their staking platform.

The development hardly came to Brian Armstrong, CEO from Coinbase divided An update to rumors about the SEC that stops crypto staking for US single-handled users. The CEO argued that staking should not be classified as security, and quoted a paradigm article about the new staking model from Ethereum.

It is remarkable that Coinbase is the second largest deposit for Ether (Eth) after the Liquid Staking Protocol Lido, followed by octopus and bony.

At Coinbase, the staking revenue made 11 % of net revenue in the third quarter of 2022, an increase compared to 8.5 % in the previous quarter. The measures of the SEC could mean problems for the stock exchange, since the prices for crypto-assets still have difficulty recovering from the winter of 2022.

grewal: The staking services of Coinbase are different

Meanwhile, the Chief Legal Officer from Coinbase, Paul Grewal, believes that the decision of the SEC does not apply to the stock exchange staking program.

Grewal comments on the octopus vs. sec-saga

"The Staking program of Coinbase is not affected by today's news. From today's announcement, it is clear that octopuses essentially offer a return product. The staking services of Coinbase are fundamentally different and no securities."

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