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Coinbase Requests Clarification from US Securities and Exchange Commission; Asserts Core Staking Services are not Securities

Coinbase, one of the largest cryptocurrency exchanges in the world, has sought clarification from the US Securities and Exchange Commission (SEC) regarding whether its core staking services qualify as securities. The company has expressed curiosity about the regulatory agency’s stance and noted that it does not believe its staking services are subject to securities laws due to their distinct nature. 

Coinbase’s staking services allow investors to earn rewards for holding certain digital assets in their wallets, a process that involves actively participating in the underlying blockchain network. The company has argued that this functionality is more akin to actively participating in a community network rather than simply investing in a security. 

Coinbase’s move comes amid increased regulatory scrutiny over the growing cryptocurrency market. While some crypto assets have been deemed securities and subject to regulatory oversight, the specific classification of staking services is still unclear. 

The SEC has yet to respond to Coinbase’s request for clarification on this issue.