The termination of staking services in four US states poses a regulatory risk for Coinbase. Berenberg analysts came to this conclusion, writes The Block.
On July 14, the bitcoin exchange notified customers in California, New Jersey, South Carolina and Wisconsin that the service was suspended due to local regulatory requirements.
June 6 SEC filed a civil lawsuit against Coinbase. The commission accused the exchange of an unregistered offer of securities in the form of a number of tokens.
The agency also targeted the Coinbase Earn staking program.
On the same day, ten state regulators made similar claims regarding the latter. In addition to the above, the list includes the Maryland, Vermont, Kentucky, Illinois, Alabama and Washington Securities Commissions.
Berenberg experts saw in the latest actions of the platform the prerequisites for testing the Coinbase Earn product.
“We believe that following the decision of the SEC v. Ripple this news served as a reminder to investors […]that significant and far-reaching issues remain for the company on the regulatory front in the US,” experts pointed out.
In the context of the verdict of the aforementioned process, analysts called Coinbase Earn “particularly vulnerable to security definition.”
Previously, the platform refused to change the business model due to the SEC lawsuit.
Recall that the former lawyer of the department, John Reed Stark, called the court’s verdict in the case against Ripple “shaky”.
The specialist did not rule out that the Commission will appeal against it and succeed – a higher authority will cancel decisions related to “software” and “other sales”. According to the document, the purchase of coins worth more than $700 million by large players still violated US laws.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!
.