BTCS Inc. Addresses Latest SEC Motion In opposition to Coinbase and Clarifies its Non-Custodial Staking Operations

BTCS Inc. (Nasdaq: BTCS) immediately addresses the latest Securities and Trade Fee (“SEC”) motion in opposition to Coinbase relating to its staking operations and clarifies the variations between BTCS’s non-custodial staking mannequin and the practices that the SEC has taken challenge with.

Immediately, the SEC took motion in opposition to Coinbase for its staking operations amongst different issues. Just like Coinbase, BTCS carried out a radical evaluation over two years in the past, concluding in our view, that “Core Staking” as outlined by Coinbase, doesn’t create a safety. BTCS performs “Core Staking” underneath the terminology of “non-custodial staking” or “staking-as-a-service”. Whereas Coinbase’s evaluation underneath the Howey check is efficacious (hyperlink: right here) and we commend their efforts, you will need to be aware that in a February 10, 2023 weblog publish, they state “At Coinbase, our core staking service is obtainable by way of our Coinbase Earn program, which permits customers to stake sure property for a recurring cost from the blockchain protocol.” Nonetheless, within the Coinbase Earn program, Coinbase takes your personal keys, i.e. they maintain your crypto, which is a fabric distinction and never consistent with their very own evaluation and assertion underneath the Howey check relating to an funding of cash. By presenting an argument that doesn’t apply to the SEC’s issues, Coinbase is muddying the waters and doing a disservice to corporations like BTCS, the crypto trade, most of the people, and regulators.

BTCS’s CEO, Charles Allen, states, “Following the FTX fiasco, trade leaders needs to be clear, particularly with respect to guidelines which are clearly black and white versus people who want additional readability. We should always work to coach regulators, politicians, and most of the people in a optimistic means to make sure any new rules or the interpretation of present rules permit the U.S. to turn out to be a frontrunner in blockchain innovation.”

BTCS’s non-custodial staking-as-a-service platform, StakeSeeker, considerably differs from different trade staking applications. StakeSeeker solely operates a non-custodial mannequin, which contrasts with the custodial fashions utilized by Kraken, Coinbase, and others. The variations between BTCS’s StakeSeeker mannequin and the custodial fashions underneath scrutiny have been outlined in our latest press launch on February 10, 2023, the place we clarified how StakeSeeker operates inside the parameters of the Howey check and doesn’t in our view create securities. The next desk summarizes the important thing variations between BTCS’s, Coinbase’s, and Kraken’s enterprise fashions which the SEC has taken challenge with.

Allen continues “We consider it’s important to distinguish between non-custodial staking fashions like ours and the practices which have been known as into query by regulators. Now we have proactively analyzed our staking mannequin and drawn conclusions that align with these offered by Coinbase relating to “Core Staking” and whereas we consider our non-custodial staking doesn’t create securities, we can’t present assurances that both the SEC or different regulatory authorities will agree.”

“Because the oldest public firm within the crypto and blockchain sector, we’ve got discovered many classes through the years. Our dedication to providing a clear, safe, and compliant non-custodial staking mannequin demonstrates our dedication to one of the best pursuits of the trade and most of the people.” said Allen.

For extra data on BTCS’s StakeSeeker and its non-custodial staking mannequin, please go to https://stakeseeker.com/.

About BTCS:BTCS Inc. is a Nasdaq listed firm working within the blockchain know-how house since 2014 and is likely one of the first U.S. publicly traded corporations with a main deal with blockchain infrastructure and staking. BTCS secures and operates validator nodes on disruptive next-generation blockchain networks that energy Net 3, incomes native token rewards by staking our proof-of-stake crypto property. “StakeSeeker” is BTCS’ newly launched proprietary Cryptocurrency Dashboard and Staking-as-a-Service platform, developed to empower customers to raised perceive and develop their crypto holdings with modern portfolio analytics and a non-custodial course of to earn staking rewards on crypto asset holdings. Customers can simply hyperlink and monitor their cryptocurrency portfolios throughout exchanges, wallets, validator nodes, and different sources; and have entry to a set of information analytic instruments comparable to efficiency and reward monitoring. StakeSeeker’s Staking Hub permits customers to earn rewards by immediately collaborating in community consensus mechanisms by staking and delegating their cryptocurrencies to company-operated validator nodes for a rising variety of supported blockchains. As a non-custodial validator operator, BTCS receives a share of token holders staking rewards generated as a validator node price, creating the potential alternative for a extremely scalable enterprise with restricted further prices. For extra data go to: www.btcs.com.

Investor Relations:ir@btcs.com

Supply: BTCS Inc.