Coinbase Reiterates that Staking Services Will Continue, Despite SEC Crackdown

Amid the US Securities and Exchange Commission (SEC) investigating alleged unregistered securities offering via staking rewards programs, Coinbase recently announced that its customers can continue to use their staking services. The US regulator recently indicated that it would take action against those committing “egregious violations” involving the offer and sale of digital asset securities without registering with the SEC or seeking an exemption. Coinbase, the world’s largest cryptocurrency exchange and platform with over 35 million customers, has outlined that it will keep offering its staking services to customers, despite the Commission’s crackdown. The firm stated: “Staking at Coinbase remains available for all customers. We are actively engaged with the SEC and other regulators to ensure that our staking products and offerings comply with applicable laws.” The announcement from Coinbase came just days after the SEC launched legal proceedings against a digital asset securities offering involving staking rewards. Coinbase’s customers can currently earn rewards for participating in the firm’s federally regulated staking services for Tezos (XTZ), Cosmos (ATOM), and Algorand (ALGO). Through staking, cryptocurrency holders can earn rewards without having to actively transact on the blockchains (which many believe is a precursor to decentralised finance (DeFi)). Despite the SEC appearing to further crack down on unregistered securities offerings via staking rewards programs, Coinbase is confident that its services will continue to be available to customers.