Coinbase submitted a petition to the U.S. SEC, emphasizing that crypto staking services should not be treated under securities law

ChainCatcher news, Coinbase has submitted a petition to the U.S. Securities and Exchange Commission (SEC) in response to the SEC's crackdown on Kraken's staking program in February. The petition focuses on the securities law treatment of services related to proof-of-stake (PoS) protocol validation, stating that staking is not a singular operational concept. While some existing models may fall under the definition of investment contract products, others clearly do not, emphasizing that core staking services do not meet the Howey test standards, meaning that cryptocurrency staking does not fall under the category of securities.

It is reported that Coinbase's Chief Legal Officer Paul Grewal reiterated on Twitter this morning the call for the SEC to clarify that staking services are not securities and that there needs to be communication with the public before enforcement. (Source link)