[vkou]

There are well-defined processes for selling unregistered securities.

Either get them registered, or don't sell them.

[latchkey]

No, there isn't.

https://www.coindesk.com/policy/2023/04/19/sec-chair-gensler...

[vkou]

That has nothing to do with what I said, or with why Coinbase is in hot water right now.

Eth might not be a security, and Coinbase would still be trading other unregistered securities.

It's telling that all their press releases don't actually address the problem.

(Also, it's not the exchange's responsibility to register securities, it's the issuer's.)

[latchkey]

Part of the Wells Notice is around the Coinbase Earn stacking service, which is staking ETH. That's what the SEC is going after and which Gensler can't even answer is a security or not.

[vkou]

ETH might not be a security, but staking ETH is almost definitely one.

Dollars and orange trees aren't securities, but as soon as I start 'staking' dollars and orange trees into financial instruments which earn rewards, it becomes a security.

Asking 'Is Eth a security?' is asking the wrong question. Asking 'Is <some particular use of Eth> a security?' is the right question. Gensler was in the process of giving such an answer, and was interrupted ~40 times in that four-minute clip. It's really quite embarrassing.

[latchkey]

> ETH might not be a security, but staking ETH is almost definitely one.

Ok, so if ETH isn't a security and staking ETH is a security, then the SEC should be able to provide a registration service for that, right? That's the problem, they can't seem to manage to do that.

> Dollars and orange trees aren't securities, but as soon as I start 'staking' dollars and orange trees into financial instruments which earn rewards, it becomes a security.

Sorry, you lost me on that one.

> Gensler was in the process of giving such an answer, and was interrupted ~40 times in that four-minute clip.

He should have had a concise answer and acted a bit less flustered then. It was a yes/no question to a professional.