Coinbase Earn program is at risk of being labelled securities, according to investment bank Berenberg’s July 17 research note shared with CryptoSlate.
Mark Palmer, the bank’s senior equity research analyst, wrote that Judge Analisa Torres ruling concerning Ripple’s XRP security status provides fodder for classifying Coinbase Earn as a security.
On June 13, Judge Torres ruled that XRP was not a security in itself but could become a security when used in certain ways, such as selling to institutions. Considering this, Palmer argued:
“We believe Coinbase Earn, the securitized product through which COIN offers staking rewards to retail customers, appears particularly vulnerable to being defined as a security within the context of the judge’s ruling.”
Coinbase staking pause highlights regulatory risk
The equity analyst further explained that Coinbase staking pause in four U.S. states highlights the regulatory risks attached to the product.
In June, the Security and Exchange Comm
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