The main legal adviser to Coinbase: "Stayking is not related to securities" – Bits Media

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Главный юрисконсульт Coinbase: «Стейкинг не имеет отношение к ценным бумагам» - Bits Media

The head of the legal department of Coinbase Paul Griel explained, Why are the services of stakeing do not fall under the laws on US securities. If necessary, The exchange is ready to prove it in court.

Main legal adviser Coinbase Paul Griel (Paul Grewal) Published an article, in which called four reasons, Why to the Coinbase Earn Stayking program, As well as other stake services, Haui test should not be used, with which the US Securities and Exchange Commission (SEC) Determines, Is the asset considered security.

First of all, Stayking cannot be called investment, Gruel claims. Clients, Staying, always retain the full right of ownership of their assets, and can also cancel the staying of these assets in accordance with the basic protocol. Secondly, Assets are posted in decentralized networks. Stakers check transactions through blockchain, interacting with the community, not through a common enterprise. Besides, Steering remuneration is determined by the protocol, but does not depend on the actions of Coinbase.

Thirdly, Making stakeing, Users do not expect a profit, wrote Gruel. He explained, that remuneration is paid for the provision of validation services in the blockchain, And this is not a return of investment. The remuneration is set by the blockchain protocol and does not depend on that, whether the client brings funds to the steaking independently or through an intermediary, such as Coinbase.

And finally, Steering remuneration is not paid on the basis of efforts, undertaken by other people. Steering services do not depend on entrepreneurial and managerial factors, defining a remuneration for staring. What nodes should receive a reward and what is its amount, It is determined by the relevant protocol. It means, that service providers simply use publicly available software and computer equipment to provide validation services, without taking any management actions. In fact, These are IT services, not investments, The lawyer concluded.

General Director Coinbase Brian Armstrong (Brian Armstrong) confirmed, that stakeing services are not related to securities, and if necessary, the exchange is ready to prove it in court. Armstrong wrote about this on Twitter in connection with the growing interest of SEC in the programs of stakeing, Considering, that they can fall into the sphere of its competencies.

Recently SEC sued the Kraken trading platform, By calling its stayking service an unregistered securities offer. As a result, Kraken was forced to close this service and pay a fine in the amount $30 million.