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Coinbase was sued by the SEC in June for allegedly operating as an unregistered broker, dealer, and exchange. Coinbase denied the allegations, arguing for the dismissal of the case and accusing the regulator of adopting a “regulation by enforcement” approach.

The exchange attorney William Savitt explored how securities are defined and pointed out the difference between “investing in Beanie Baby Inc. and buying Beanie Babies.”

In its June complaint, the SEC said that tokens such as SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO are securities.

Savitt made an explanation about Coinbase

Savitt noted that Coinbase does not argue that tokens listed on its website can never be considered securities.

“We do not accept the view that token transactions can never be investment contracts,” he said, adding that the SEC did not present any allegations in its case that meet the definition of an investment contract.

He also said that Coinbase agrees with the SEC that a formal contract signed by the buyer is not necessary to create an investment contract. However, he still said that token buyers reading technical reviews and other information about token projects does not mean they are buying investment contracts.

Savitt also rejected the SEC’s thesis that token sales on Coinbase should be considered investment contracts because token projects may have made certain promises to buyers and buyers may have bought tokens in the hope of a price increase.

“There needs to be a statement intended to convey an enforceable promise,” Savitt said. “That is the irreducible minimum of what could be considered an investment contract.”

The Coinbase attorney said that what really distinguishes blockchain tokens from securities is that a person who buys a stock, whether directly from an issuer or on a secondary market, receives all the rights that ownership of those securities confers, but that is not the case for tokens.

The post Coinbase Files Suit to Determine Whether Tokens Listed on Its Exchange Are Securities appeared first on Coin Engineer.

The exchange’s US CEO and Global Trade Director, Bobby Zagotta,

“After informing our valued customers in March, Bitstamp will officially cease its services to its customers in Canada from January 8, 2024.” He said. “As a result, all accounts in Canada will be closed, and customers will no longer be able to access their accounts.”

Zagotta told his customers to withdraw their money by January.

Zagotta added, “This is not a decision we take lightly. Also, we thank our Canadian customers for their loyalty over the years. We hope to serve Canada again in the future.”

In addition, the exchange also halted some of its services in the US due to the SEC’s regulatory pressures on certain cryptocurrencies. It also ended the trading of MATIC, SOL, NEAR, AXS, CHZ, MANA, and SAND on August 9 and ETH trading on August 23.

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Bitstamp Suspends ETH Staking Service in the US!

Bitstamp will terminate its Ethereum staking program for all US users from next month. Also, the exchange’s US CEO, Bobby Zagotta, in his statement,

“From September 25, 2023, Bitstamp will no longer offer staking services in the US,” he said. “Consequently, US customers will stop receiving staking rewards. Besides, all other Bitstamp services will remain unaffected.”

This move came amid US regulation targeted by the SEC. The SEC stated that such services fall under the umbrella of investment contracts and therefore need to be registered as securities.

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The post Bitstamp to Terminate its Canada Service in January! appeared first on Coin Engineer.