Armstrong’s CEO says “staking” is not a hedge

Coin base news: In the midst of an extensive crackdown on crypto by regulators, Brian Armstrong, co-founder and CEO of Coinbase Global Inc., stated that the “staking” service offered by many in the crypto space should not be considered a security measure. In a recent TV interview, Armstrong also cited the reasons behind the recent removal of rival Binance’s stablecoin BUSD and their current relationship with the US Securities and Exchange Commission (SEC).

Brian is positive about cryptocurrency staking

Armstrong had previously disagreed with SEC chairman Gary Gensler, and the company recently stated that it cannot remove a specific crypto asset, even if the SEC deems it a security measure, until a final legal ruling on the matter is issued. According to the CEO of Coinbase, the cryptocurrency exchange has received investigation subpoenas from the financial regulator regarding staking, stablecoins and their revenue-generating services.

Read more: Check out the top 10 DeFi lending platforms in 2023

By interviewThe 40-year-old crypto tycoon seemed determined by the fact that Coinbase’s staking services cannot be considered collateral because 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 staking, Armstrong was quoted as saying:

We are ready to defend it in court if need be. But we’re never looking for a fight. We want to work with regulators around the world.

Armstrong stressed that the exchange maintains a cordial relationship with the SEC despite some disagreements and differing opinions.

Coinbase CEO opens up to BUSD

When asked about the removal of the Binance stablecoin from the exchange, Brian stated that the decision was made after concerns about the liquidity of the cryptocurrency. According to their internal review, the fact that Paxos – the issuer of BUSD – was ordered to stop minting the stablecoin has raised doubts about its future and falling liquidity in the crypto market. It is also speculated that the SEC intended to file a lawsuit against Paxos for marketing BUSD as an unregistered security.

However, Armstrong has a positive outlook on the wider stablecoin industry, despite what happened to the Binance exchange. The CEO added that he was “pretty bullish” on USD Coin (USDC), which is also a dollar-pegged stable coin issued by Circle with Coinbase as a founding member. At the time of writing, the USDC price remained pegged to one dollar with a market capitalization of $42 billion.

Even with recent events, trading volume on the exchange has plummeted as mentioned in Coinbase’s Q4 report, resulting in a $557 million loss for the company and a 75% drop in revenue. This decline occurred amid a string of high-profile industry bankruptcies and subsequent scandals.

Also read: Hedera joins top Coinbase official to drive growth; HBAR price ready for bull race?

Pratik has been a cryptocurrency evangelist since 2016 and has been through just about everything crypto has to offer. Whether it’s the ICO boom, the 2018 bear market, Bitcoin’s halving so far, he’s seen it all.

The content presented may contain the personal opinion of the author and is subject to market conditions. Before you invest in cryptocurrencies, do some market research. Neither the author nor the publication accepts any liability for personal financial losses.

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