• Coinbase has said it will continue to offer its staking services, despite the SEC’s crackdown on unregistered securities offers made via staking incentive schemes.
• Coinbase clarified that the decentralized protocols, not the exchange itself, are the source of any incentives accrued by platform users.
• Kraken recently reached an agreement with the SEC to pay a settlement of $30 million for failing to register its staking-as-a-service program.

Coinbase Stands Firm on Staking

Coinbase, one of the largest cryptocurrency exchanges in the world, has declared that it will continue offering its staking services despite recent efforts by the U.S. Securities and Exchange Commission (SEC) to clamp down on purported unregistered securities offers made via staking incentive schemes.

Coinbase Clarifies Protocol Rewards

The exchange sent out emails to its user base clarifying that rewards from staked assets come from decentralized protocols rather than directly from Coinbase itself; this was done in order to avoid any potential grey area issues similar to those experienced by Kraken, a competing crypto exchange which had to reach an agreement with the SEC and pay a $30 million settlement for failing to register its own staking-as-a-service program.

Modification of Terms and Conditions

Coinbase stated that it would be modifying its terms and conditions beginning March 29th—this was further confirmed in a tweet posted by popular traders who shared screenshots of news emails sent by Coinbase regarding their plans for continued support of their staking program.

SEC Unhappy With Coinbase’s Plans

Although Coinbase’s clear distinction between protocol rewards and being a service provider appears lawful under current regulations, there is still speculation as to whether or not the SEC will be pleased with these plans moving forward given their commitment towards cracking down on such activities within cryptocurrency markets as part of their mission statement.

Will Staking Services Expand?

Despite growing pressure from regulatory bodies like the SEC, Coinbase appears determined not only to maintain but also potentially expand its current suite of staking services; whether or not this plan moves forward without issue remains up in the air.

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