Coinbase, the crypto exchange, has said it would continue to provide its staking services, even though the Securities and Exchange Commission (SEC) is working on a plan to clamp down on purported unregistered securities offers made via staking incentive schemes.
An email by the firm states that “Coinbase serves merely as a service provider linking you, the validators, and the protocol” instead of giving a portion of its staking rewards. It also further states that Coinbase does not provide a share of its staking rewards.
Coinbase might instead expand its staking services
Coinbase has assured its user base again that its staking services would continue and “may actually expand,” despite the recent crackdown on staking services provided by centralized providers by the United States Securities and Exchange Commission (SEC).
On Mar. 10, popular traders shared screenshots of news emails sent by the exchange. Coinbase said it would modify its staking terms and conditions beginning on Mar. 29.
Coinbase’s most recent terms clarify that the decentralized protocols, not the exchange itself, are the source of any incentives accrued by platform users.
Although the Securities and Exchange Commission (SEC) may be irritated by the idea of Coinbase’s staking rewards continuing and possibly increasing, the clear distinction around protocol rewards and being a service provider appears to be a move to avoid any potential grey area issues that Kraken, a competing
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Author: Brenda Mary
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