Coinbase’s Staking Service Faces Questions After Kraken’s SEC Settlement

Coinbase Chief Legal Officer Paul Grewal argued on Twitter on Thursday that his exchange’s staking business is “fundamentally different” from Kraken’s, which he described as a “yield product.” And he reiterated this in a statement to CoinDesk on Friday, saying that “Coinbase’s staking program is not affected by [the Kraken] news. Staking on Coinbase continues to be available and staked assets continue to earn protocol rewards. What’s clear from [the] announcement is that Kraken was essentially offering a yield product. Coinbase’s staking services are fundamentally different and are not securities. For example, our customers’ rewards depend on the rewards paid by the protocol, and commissions we disclose. Rules making clear these distinctions would provide real clarity to consumers, investors, and the industry.”