Coinbase CEO Brian Armstrong has confirmed that the crypto exchange will continue to operate its crypto staking service despite facing lawsuits from state and federal regulators. We’re not going to wind down our staking service, Armstrong said at the Bloomberg Invest Conference. Again, as these court cases play out, it’s really business as usual. Coinbase’s staking service accounts for about 3% of overall net revenue and is a key part of the company’s strategy to diversify its largely trading fee-dependent revenue base.
Armstrong also noted that Coinbase would not be at risk of a bank-run-like rush of withdrawals similar to those some of its peers have suffered. All the funds are backed one-to-one, and you don’t have to take our word for it, Armstrong said. As a public company, we have auditors…who have gone in and verified all that.
The SEC and a ten-state coalition led by the Alabama Securities Commission have both taken legal action against Coinbase, alleging the company has violated various state securities laws. Despite this, Armstrong is confident that Coinbase’s staking service will continue to operate.