Coinbase Defies Legal Action and SEC Scrutiny to Maintain Staking Service and Asset Listings

Despite facing lawsuits from state and federal regulators, Coinbase CEO Brian Armstrong has stated that the exchange will continue operating its crypto staking service, which accounts for about 3% of overall net revenue. The SEC has sued Coinbase for a swath of violations, including allegations the company sold unregistered securities, while a ten-state coalition led by the Alabama Securities Commission has also taken aim at the exchange, slapping Coinbase with allegations the company’s staking program had violated various state securities laws. Coinbase’s staking service is a cornerstone of the company’s strategy to diversify its largely trading fee-dependent revenue base.