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Coinbase’s Staking Program Is Not Affected by Kraken Crackdown, Says Chief Legal Officer

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Coinbase Global Inc.’s shares fell the most in more than six months after rival Kraken was forced to stop providing an investment service also offered by the largest US cryptocurrency exchange.

Coinbase Chief Executive Brian Armstrong previewed the settlement late Wednesday by blasting the SEC for allegedly wanting to get rid of crypto staking by retail investors. In response to Kraken’s settlement, the exchange’s chief legal officer, Paul Grewal, said the company’s on-chain staking services are “fundamentally different.”

Coinbase Chief Executive Brian Armstrong previewed the settlement late Wednesday by blasting the SEC for allegedly wanting to get rid of crypto staking by retail investors. In response to Kraken’s settlement, the exchange’s chief legal officer, Paul Grewal, said the company’s on-chain staking services are “fundamentally different.”

“Coinbase’s staking program is not affected by today’s news.” Grewal said in a statement to Bloomberg News. “What’s clear from today’s announcement is that Kraken was essentially offering a yield product. Coinbase’s staking services are fundamentally different and are not securities.”

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