There would be a “transparent Coinbase fee” as per the exchange.
The U.S. SEC earlier penalized Kraken for its staking program.
A month after U.S. authorities clamped down on similar offerings, Coinbase informed customers Monday that it is revising the terms and conditions of its staking service.
In an email to customers on Friday, the largest cryptocurrency exchange in the United States confirmed the continuation of staking and emphasized that clients will earn rewards through protocols and not Coinbase itself, addressing a major point of contention with U.S. regulators like the Securities and Exchange Commission (SEC).
Serves Merely as a Service Provider
It was announced today that there would be a “transparent Coinbase fee” and that Coinbase serves merely as a service provider linking the user to the validators, and the protocol.
Currently, Solana (SOL), Cosmos (ATOM), Cardano (ADA), and Tezos (XTZ) are the assets that need to be unstaked on Coinbase. Users who hold Solana on Coinbase, for example, are eligible to get staking rewards automatically and without opting into the program. Yet, that’s beginning to change.
It may take a “few hours or a few weeks” for an asset that has been staked on Coinbase to become unstaked, at which point it may be transferred or sold. That took longer than expected owing to strict protocol requirements and Coinbase’s processing time, so the company informed its clients via email.
The U.S. Securities and Exchange Commission penalized Kraken, another major American digital asset exchange, $30 million last month for the alleged violation of securities laws involving Kraken’s staking program, prompting Coinbase to alter its terms of service. The exchange was also told to stop providing staking to clients in the United States.