Coinbase and Kraken executives: the products provided on the platform are not securities

It is reported that Scott Bauguess, Vice President of Coinbase Global Regulatory Policy, said in the panel discussion at the digital asset seminar on Thursday that we are glad that the products we provide in the United States are not securities. Tokens on Coinbase do not behave like securities because of the lack of dividends and residual interest; But even if all tokens are recognized as securities, Coinbase can make it work. There are reasonable rules, which can be done.

Interpretation of this information:

The statement made by Scott Bauguess, the VP of Coinbase Global Regulatory Policy, regarding the company’s products not being classified as securities in the United States, highlights the company’s efforts to comply with regulations in the cryptocurrency market. This statement implies that Coinbase is a platform that offers tokens that do not behave like securities due to their lack of dividends and residual interest. By this statement, he could mean that Coinbase is confident that the tokens offered on their platform will not be classified as securities since they have no financial incentives or value associated with them.

However, even if all tokens are viewed as securities, Coinbase is still capable of making it work according to Bauguess. The company arguably has reasonable rules and regulations that they follow, which could indicate that Coinbase is aware of the potential risks associated with trading securities in the cryptocurrency market. The statement implies that Coinbase is willing and capable of complying with regulations, regardless of whether tokens are classified as securities or not.

The statement further emphasizes Coinbase’s awareness and recognition of regulatory changes and shifts in the cryptocurrency market. As more and more financial regulators around the world work on regulating the cryptocurrency market, it is evident that Coinbase seeks to comply with these regulations to ensure that their users are protected and their platform remains relevant in the ever-changing regulatory environment.

Overall, Scott Bauguess’s statement emphasizes Coinbase’s willingness to comply with securities and regulatory laws while maintaining their position as a leader in the cryptocurrency market. Coinbase has been recognized as one of the most significant cryptocurrency exchanges in the world, and their efforts to adhere to regulations further improve their reputation and appeal to investors. Ultimately, whether tokens can be classified as securities or not, Coinbase appears to be a platform that is willing and able to work with regulators to ensure the safety and protection of their users.