Coinbase’s CPO Surojit Chatterjee Joins Andreessen Horowitz

Surojit Chatterjee, the person who operated as the chief product officer at Coinbase (a crypto exchange platform), has left the firm for a venture capital company Andreessen Horowitz (a16z). He has become a part of the venture capital platform as an executive in residence (EIR) for the crypto unit, as mentioned in a post shared on Twitter.

Product Head of Coinbase Leaves His Place to Join Andreessen Horowitz as Its Executive in Residence

Chatterjee noted in his tweet that he is enthusiastic to learn from some most intellectual people in the world of business. He added to offer assistance to builders and founders in scaling the businesses. Chatterjee became a part of Coinbase back in 2020’s start, as per his official page on LinkedIn. Nonetheless, the executive did not mention the reason for his exodus.

Formerly, he provided his services at Google for up to a decade. At operated on commerce, advertising technology, and payments at Google. In addition to this, he also worked on Google Shopping’s development. Recently, a blog post was published by Paul Grewal (the Chief Legal Officer of Coinbase). In that post, the CLO argued that the slipups in the regulation of the technology backing the ecosystems of staking may negatively impact the industry.

Grewal asserted that the staking services of the crypto exchange do not come under the category of securities. The post witnessed one day following the closure of staking services by another crypto exchange Kraken in the United States. This was done while responding to the enforcement measures taken by the US Securities and Exchange Commission (SEC).

The Coinbase CLO stated that while keeping in view the significance of the respective technology, the wrong implementation of the regulation could lead to grave harm to the crypto market’s development in the jurisdiction of the United States. As noted by Grewal, by enacting stringent mandates as well as the imposition of securities regulations on the staking services in the United States, the regulatory agencies may become unfair to the US clients.

Staking Services Do Not Come under the Category of Securities, Says a Coinbase Executive

As per him, the regulators may stop the consumers from availing of the fundamental crypto services. As a result of this, he added, the US consumers would be compelled to move to offshore platforms that are unregulated. In his words, staking does not count as security in line with the Securities Act of the United States or the Howey Test. These are the laws utilized by the US SEC for determining if an investment contract comes under the category of securities.

Grewal disclosed that the subject of if the category of securities should also take into account crypto assets requires an exclusive discussion. The executive asserted that while the staking consumers always have their assets’ complete ownership as well as the authority to unstake their assets, the related services cannot be labeled as an investment of funds.

The executive additionally claimed that the criteria of the Howey Test are also not met by the staking as the staking of assets is carried out on decentralized platforms. Apart from that, the transfers are validated via the user community rather than a usual enterprise, Grewal added.

Moreover, the staking services do not even meet the reasonable profit expectation under the Howey Test. He specified that the determination of staking rewards is determined through protocol rather than Coinbse. Hence, the common enterprise-related definition cannot be implemented on them.

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