Coinbase Vs SEC, after Kraken staking shutdown

GM. This isn’t CoinBase, It’s CoinBasics : your go-to source for all things crypto!

But boy oh boy, this piece has crucial info about the future of CoinBase & a lot more. A lot ! That too, in short.

So Here’s What we Got For You Today :

1. CoinBase, SEC & Kraken.

2. Upcoming Coordinated Reagulation From 20 Nations.

3. How Polygon is Supercharging Eth with ZkEVM. (simplified)

So, sit back, and let's dive into the world of Web3!

SEC STRICKING, KRAKEN SETTLE, COINBASE STAVE IN.

Before CoinBase,

Here’s How SEC SWEPT OUT KRAKEN.

The U.S. Securities and Exchange Commission (SEC) announced that

• Kraken will be ending its crypto staking-as-a-service platform for U.S. customers

• pay a $30 million fine to settle charges of offering unregistered securities.

Kraken was the leading cryptocurrency exchange after Binance & CoinBase.

The SEC filed its lawsuit in federal court on Thursday.

The complaint alleges that Kraken promised benefits to investors through its staking investment program, including regular returns and payouts. Kraken reached a Settlement immediately.

In settlement, Kraken will immediately stop its staking service for U.S. clients, with the exception of staked ether, which won't be unstaked until after the Ethereum Network's Shanghai upgrade. (coming in march 2023) Non-U.S. clients are unaffected.

The CEO of Kraken's rival, Coinbase, had previously tweeted that the SEC was coming for all staking programs with pitchforks, calling it a "terrible path for the U.S."

But CoinBase Isn’t Settling, Uh-Unh 🙅‍♂️

Coinbase to Fight SEC in Court Over Staking

Paul Grewal, the Chief Legal Officer at Coinbase, responded to the SEC settlement with Kraken by stating that Coinbase will fight any legal action taken by the SEC over its staking services.

Grewal asserts that staking is not a security and that Coinbase customers have a right to their rewards. He added that the public should not have to parse complaints in federal court to understand what a regulator expects.

But Why did SEC take down Kraken immediately, & not CoinBase?

Coinbase is a publicly traded company, and if the SEC were to approach them over their staking services, they would have no choice but to go to court unless they want action from their shareholders.

In contrast, Kraken, which is not yet publicly traded, opted for a settlement. The founder of Kraken, Jesse Powell, stated that the decision was based on risk-adjusted returns for the company rather than fighting the SEC.

Managed chaos is the strategy being followed by the current SEC chair, and it aims to sow confusion and fear in the crypto industry to achieve subjugation.

However, Coinbase and Silicon Valley know what is going on, and this strategy may backfire as it has done in the past.

But Not all regulation is Bad Regulation as they Say.

G20 Explores Coordinated Crypto Regulation

The G20, a group of major global economies is exploring the possibility of coordinating on cryptocurrency regulation. (Including US, India, China, Euro Area, Japan, UK, Russia, ETC)

According to India's finance minister, Nirmala Sitharaman :

"The sophisticated technology behind virtual assets requires discussion on regulatory actions among multiple countries.

We are talking to all nations, that if it requires regulation, then one country alone cannot do anything,

The goal is to make a standard operating procedure for a regulatory framework that is effective for everyone." said Sitharaman.

But, the crypto industry continues to evolve anyways,

just Like Polygon is Evolving

How Polygon is Supercharging Eth with ZkEVM. (simplified)

Polygon Network has just launched Polygon (MATIC) zkEVM, a Layer-2 scalability solution based on cryptographic zero-knowledge proofs.

This new development will allow Ethereum transactions to be processed with unparalleled speed and efficiency.

According to a core developer of Polygon (MATIC) zkEVM, the prover mechanism of the technology now only takes 2.5 minutes to validate a batch of 250-500 Ethereum-based ERC-20 token transactions.

This will dramatically reduce transactional fees, with a $0.0001 fee per transaction on an m6id.Metal instance.

The launch of Polygon zkEVM is expected to significantly improve Ethereum's scaling opportunities, developer friendliness, and inject new life into the ZKP narrative.

Speaking of Ethereum,

Ethereum co-founder Vitalik Buterin Donates 99 Ethereum

He made a significant donation of 99 ether, worth approximately $150,000, to Ahbap earthquake support.

This donation will help with the recent disaster in Turkey and Syria. and again, it serves as a reminder of the power of cryptocurrency to make a positive impact in the world.

So, there you have it, folks! A trifecta of crypto news that's sure to get your heart racing.

Subscribe if you haven’t , we'll keep you up-to-date with all the latest and greatest in the world of Web3, so be sure to stay tuned!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.