Coinbase has suspended its staking services in 4 US states
Sunday,
Date: 16 July 2023
Asshalamu alaykum
Due to regulatory actions of Coinbase, staking services has been suspended in 4 major states of US. California, New Jersey, South Carolina and Wisconsin are in the list till now. This news has shocked me. I'm not sure why this is only happening with cryptocurrency. Let me go over the news in detail.
Why this has happened?
Coinbase is US based largest crypto exchange. They recently stated that they will temporarily restrict users from staking further funds in four states due to legal regulations from local regulators. The news has come to press on 14th July 2023. It says that users in California, New Jersey, South Carolina, and Wisconsin would be restricted from using certain staking services until further notice.
In June SEC complained against the cryptocurrency exchange for marketing unregistered securities, regulatory agencies in 10 US states initiated their own lawsuits, causing the halting of specific services.
What is the statement of Coinbase?
Coinbase said that they strongly disagree with any claim that their staking services are securities. But as they don't have a chance to justify themselves, they are going to comply with whatever preliminary official orders have been issuedsource.
Due to the acts of regulators in California, New Jersey, South Carolina and Wisconsin Coinbase had to suspend in staking further funds. People who all are living in Alabama, Illinois, Kentucky, Maryland, Vermont and Washington can still stake their assets.
Aftermath - Following the initial meeting in the SEC's complaint against Coinbase this announcement has been made. On June 6, the commission filed the lawsuit saying that the crypto exchange has been operating as an unauthorized security broker since 2019. All of the allegations have been mainly rejected by Coinbase.
Other crypto related companies have been attacked by state and federal regulators for staking, arguing that the services violated securities laws. Kraken obtained a $30 million settlement with the SEC in February and they had to cease supplying staking services or programs to American customers.
Conclusion
The SEC regulates all crypto-related businesses in the United States. Crypto appears to be doomed in the long run if such violation continues. Proper procedures can be put in place to prevent such accusations.
Have a good day.
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Thank You,
@md-sajalislam
https://twitter.com/sajalislam08/status/1680447596832366592?t=-20ZpMShnDtx2ejPBfJaYg&s=19
The SEC drama is not over for limiting crypto 😁
Hello @md-sajalislam
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