Coinbase CEO Brian Armstrong has confirmed that the popular cryptocurrency exchange will continue its crypto staking service, despite ongoing lawsuits from state and federal regulators, Speaking at the Bloomberg Invest Conference.
Armstrong stated that the lawsuits would not impact their staking service, which currently contributes approximately 3% to their net revenue. This decision comes in the wake of the SEC’s recent legal action against Coinbase, accusing the company of selling unregistered securities.
Additionally, a ten-state coalition, led by the Alabama Securities Commission, raised allegations that Coinbase’s staking program violated state securities laws.
Coinbase’s staking service plays a vital role in the company’s efforts to diversify its revenue sources, as the majority of its earnings have historically relied on transaction fees.
Although the prolonged crypto bear market has affected trading volumes and Coinbase’s earnings, Armstrong reassured users that the company’s funds are fully backed on a one-to-one basis.
Independent auditors have verified the security and integrity of the funds, providing transparency to users and investors.
Despite the legal challenges, Coinbase remains committed to providing uninterrupted services to its customer base, maintaining its position as a leading cryptocurrency exchange.
Also Read: Coinbase CEO Brian Armstrong’s Net Worth Drops After SEC Case
