Following the conclusion of a dispute with the SEC about staking services, Kraken CEO Brian Armstrong issued a statement shortly thereafter.
The chief executive officer of Coinbase, Brian Armstrong, has ramped up what seems to be a preventative defence of the staking services offered by his crypto exchange.
“Staking services provided by Coinbase are not considered to be securities. We are more than willing to defend this in court if it becomes necessary,” Armstrong said on Twitter on Sunday.
Armstrong’s remarks over the weekend came after a disagreement between Kraken, a competing exchange, and the United States Securities and Exchange Commission was resolved earlier in the week. For failing to register the offer and sale of its “crypto asset staking-as-a-service program,” Kraken has stipulated that it will pay a punishment in the amount of $30 million.
Additionally, the chief executive officer of Coinbase has said that restricting the practice of cryptocurrency staking would be a “bad route” for the United States.
Coinbase’s stock price dropped by more than 20% despite the fact that the company has said that its staking services are “fundamentally different” from Kraken’s.
Armstrong has said that crypto firms operating in the United States should be supported in their efforts to expand and should not be unduly prevented from doing business.