Alongside its staking program, the SEC has also requested information about Coinbase’s stablecoin products, the asset-listing process, and the classification of assets.
The Coinbase staking program is now under increased regulation by the U.S. Securities and Exchange Commission (SEC). Through this initiative, Coinbase customers can stake their digital assets and receive incentives.
The exchange “received investigative subpoenas and requests from the SEC for records and information about specific customer programs, operations, and existing and expected future products,” according to Coinbase’s quarterly regulatory filing.
The SEC has requested information from Coinbase about stablecoin products, the asset-listing procedure, and asset classification in addition to its staking program. The first cryptocurrency exchange is not the first to provide staking services.
By enabling users to validate transactions and protect the blockchain network, it enables users to earn returns on their crypto assets.
Coinbase losses more than $1 billion in Q2
Coinbase reported a net loss of more than $1 billion in its second quarter 2022 earnings, which were released on Tuesday, August 9. The crypto exchange blamed the market collapse and the hazy macroeconomic environment for its poor performance.
For the second quarter, 8.5 percent of Coinbase’s net revenue came from blockchain incentives from staking. The SEC, on the other hand, claimed that some of the cryptocurrencies listed on Coinbase are securities, leading to a new dispute between Coinbase and the securities regulator.
Coinbase, however, has categorically refuted these accusations. Coinbase reported in its most recent regulatory filing:
“As with all regulators around the world, we are committed to a productive discussion with the SEC about crypto assets and securities regulation”.
The SEC is attempting to tighten its control over the cryptocurrency industry in the wake of this year’s market fall. It has consequently become more vigilant about how cryptocurrency exchanges and corporations operate.
The COIN stock has been rapidly declining from a good listing last year. The COIN stock has already experienced a year-to-date decline of more than 60%.
