Yesterday, the SEC’s announcement that it was filing a lawsuit against Kraken and the cessation of staking services caused Bitcoin to fall below $22,000 again.
Although an agreement was reached between the SEC and Kraken, the SEC’s action caused the market to move and prices to pull back.
Investors are worried that a similar move to Kraken will head towards Coinbase.
These concerns grew after the SEC targeted Kraken, and Coinbase stock tumbled 14% yesterday.
Speaking to Bloomberg on the subject, Coinbase chief legal officer Paul Grewal stated that Coinbase’s staking services are different from Kraken’s and they do not expect a similar action.
“Coinbase staking services are unaffected by today’s news. When we look at the statement made today, we see that Kraken’s staking service is also a return product. Coinbase staking services are fundamentally different and not securities.”
The 14% drop yesterday was the biggest drop for Coinbase stock in a single day since July 26, 2021. This shows that the level of anxiety of investors is quite high.
This fear was heightened by reports yesterday that Coinbase is under investigation for selling digital securities, which are securities, without registration with the SEC.
The CEO of Coinbase warned before the news came yesterday:
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With the opening of the US exchanges, we will follow up to see if Coinbase’s lawyer’s statements ease the anxiety of the investors.