Coinbase CEO says staking program will be defended in court

The Coinbase bitcoin exchange’s chief executive, Brian Armstrong, said that the platform’s staking services cannot be regarded as securities offerings. He said the company is prepared to defend this claim in court.

Coinbase’s staking services are not securities. We will happily defend this in court if needed.https://t.co/GtTOz77YV3

— Brian Armstrong (@brian_armstrong) February 12, 2023

Coinbase’s warning relates to allegations filed against Kraken on February 10.

SEC Commissioner Hester Peirce criticised the regulator’s actions for a coercive decision that \”is not an effective and fair way\”.

Armstrong agreed, calling the SEC’s demand to register staking as a securities offering \”insincere\”.

The chief legal officer Paul Grewal noted that Kraken’s news did not affect the exchange’s product offerings.

SEC actions have angered members of the community. Joining the criticism were U.S. Representative Tom Emmer, Blockchain Association CEO Kristin Smith, venture firm Cinneamhain Ventures partner Adam Kokran and others.

In April, SEC Chair Gary Gensler urged cryptocurrency platforms to take note of Kraken’s decision to close the staking program for US customers.

Last year the SEC filed 30 cases related to digital assets. Later Gensler said that cryptocurrency regulation would be a priority for the SEC in 2023.