ChainArgos: Coinbase L2 Network Base May Violate US Federal Law

Odaily Planet Daily News Blockchain analysis company ChainArgos General Counsel Patrick Tan and CEO Jonathan Reiter released a video claiming that the Coinbase L2 network Base may violate US federal laws. Coinbase may have repeatedly violated the terms of multiple state money transmitter licenses, they said. While Coinbase claims to be compliant and have the proper licenses, its Ethereum L2 network, Base, may be in violation of the terms of its money transfer license. When Coinbase announced the launch of the Base testnet in February 2023, it said it would provide a platform for decentralized application developers. While Coinbase claims that Base will be decentralized, it also acknowledges that its employees and contractors essentially control all of Base's technical development. Most notably, Base is compatible with any anonymous Ethereum wallet and pays all fees in ETH. ETH holders can all transfer and trade assets classified as securities by the SEC through Base, which may violate the terms of its money transmission license. (Protos)