Since Tuesday evening, the Coinbase cryptocurrency exchange has suspended the withdrawal of rewards resulting from ETH in staking. In a context of open conflict between the Securities and Exchange Commission (SEC) and Coinbase, the company’s teams want to reassure their customers: withdrawals will be open again at the end of the week.
Withdrawal of rewards is suspended for three days
On Tuesday evening, Coinbase announced the temporary suspension of withdrawals relating to ETH staking rewards. According to the teams of the largest exchange in the United States, a failure with a minor impact would be the source of this problem. A return to normal is estimated within the next 72 hours.
The listed company wants to reassure its users and investors. According to its technical failures web page, staked ETH are not impacted and staking rewards will still be distributed to their holders.
” Your staked ETH is safe and earning rewards during this temporary hiatus. Our teams are working to resolve this issue as soon as possible and all accrued rewards will be paid out. »
Staking services, such as the one offered by Coinbase, are highly valued by investors with limited economic capital. Indeed, to participate in staking on the Ethereum blockchain via the exchange, it is not necessary to hold 32 ETH, equivalent to 53,000 dollars. at current price. Similarly, Coinbase’s service does not require the construction of a blockchain node, thus simplifying the daily life of investors.
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Staking: a regulatory issue in the United States
While staking services are allowed in Europe, the latter are not unanimous among regulators across the Atlantic.
In February 2023, the Securities and Exchange Commission (SEC) condemned the Kraken platform to a payment of 30 million dollars ” for the unregistered offer and sale of securities through its staking program. Therefore, Kraken has stopped offering its staking service to US customers.
Similarly, last March, the SEC has called Coinbase to order regarding its staking program. Brian Armstrong, the exchange’s CEO, defended himself by asking for regulatory clarification on the subject in order to consider future rules that are clear, precise and applicable in the United States.
The following month, in the face of inaction by the SEC, Coinbase has filed a lawsuit against the institution led by Gary Gensler. The latter defended itself last Monday, somehow, in a press release describing the company’s complaint as unjustified. Thus, the case remains to be followed.
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Source : Coinbase
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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