Coinbase Reiterates Staking Services Despite SEC Crackdown
12. März 2023
• Coinbase reassures its customers that staking services will continue and may even increase despite the SEC’s crackdown.
• The exchange states that their users earn rewards from decentralized protocols, not from the exchange itself.
• Coinbase CEO Brian Armstrong has stated that they would defend their position in court if necessary.
SEC’s Crackdown on Crypto Staking Services
The United States Securities and Exchange Commission (U.S. SEC) has been cracking down on staking services offered by centralized providers recently. Popular trader AltcoinPsycho shared the details of Coinbase’s updated terms and conditions which took effect on March 29th in a customer email.
Coinbase’s Reassurances to Customers
In response to this, Coinbase reassured its customers that its staking services will continue and may even increase, despite the actions of the SEC. The message from Coinbase was clear: users earn rewards from decentralized protocols rather than from the exchange itself as per their new terms and conditions. They also noted that if customers want to keep staking, no action is required as their rewards may actually increase due to these changes.
Kraken Settles with U.S SEC
Kraken recently faced some potential grey area issues due to its own crypto staking service offerings and agreed to pay a $30 million settlement for failing to register with the U.S SEC last month as part of an agreement which stipulates they can no longer provide staking services in America anymore – investors were also found to have been offered outsized returns untethered to any economic realities with Kraken being unable to pay any returns at all according to the complaint by the U.S SEC .
Coinbase Distinguishes Its Service From Kraken’s
Coinbase has repeatedly claimed that its crypto-staking service is fundamentally different from Kraken’s; Brian Armstrong, CEO of Coinbase has stated he would happily defend his company’s position in court if necessary if it comes down to it..
Despite concerns over potential legal issues concerning crypto-staking services, Coinbase continues reassuring customers that its service will remain available or even increase – emphasizing it only acts as a provider connecting users and validators while making clear distinction between protocol rewards and those offered directly by the exchange itself in order to avoid penalties similar those faced by Kraken recently..