Coinbase News: Amid a widespread regulatory crackdown on crypto, Brian Armstrong, co-founder and CEO of Coinbase Global Inc., said the “staking” service offered by many in the crypto space should not be considered a security. In a recent TV interview, Armstrong also mentioned the reasons for the recent removal of rival Binance’s BUSD stablecoin and their current relationship with the US Securities and Exchange Commission (SEC).
Brian Positive on Crypto Staking
Armstrong has had previous disagreements with SEC Chairman Gary Gensler, and the company recently said it cannot delist a particular crypto asset even if the SEC claims it is a security — pending a final legal ruling on the matter. According to the CEO of Coinbase, the crypto exchange has been served with investigative calls from the financial watchdog involving staking, stablecoins and the services that carry a return.
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throughout interviewthe 40-year-old cryptocurrency mogul seemed upset that Coinbase’s staking services could not be considered safe as they provide a service that “passes through these coins to help them participate in staking, which is a decentralized protocol. “
Speaking about the SEC’s recent crackdown on Kraken betting, Armstrong said:
We are ready to defend it in court if necessary. But we’re never looking for a fight. We want to work with regulatory authorities around the world.
Armstrong highlighted the fact that the exchange maintains a cordial relationship with the Securities and Exchange Commission despite some disagreements and differing opinions.
Coinbase CEO opens up on BUSD
When asked about the delisting of Binance’s stablecoin, Brian stated that the decision came after liquidity concerns related to the cryptocurrency. According to their internal review, the fact that Paxos – the issuer of BUSD – was ordered to stop minting the stablecoin raised questions about its future and reduced liquidity in the cryptocurrency market. It is also alleged that the SEC intended to file suit against the Paxos for trading BUSD as an unlisted security.
Still, Armstrong has a positive outlook for the broader stablecoin industry, despite what happened with the Binance exchange. The CEO added that he is “fairly bullish” on USD Coin (USDC), which is also a dollar-pegged stablecoin issued by Circle with Coinbase as a founding member. At the time of writing, the USDC price remained pegged to the dollar with a market capitalization of $42 billion.
Even with the recent developments, the exchange’s trading volumes fell sharply, according to Coinbase’s fourth-quarter earnings report, which resulted in a $557 million loss for the company and a 75% drop in revenue. That decline came amid a series of high-profile industry bankruptcies and scandals.
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