Coinbase, a leading cryptocurrency exchange based in San Francisco, has announced that it will not halt its crypto staking program despite reports of the SEC’s crackdown against crypto staking services in the U.S.

Coinbase, through its Chief Legal Officer Paul Grewal, said the exchange’s staking program will continue to be available to United States clients. 

Grewal assured Coinbase customers that the news of Kraken agreeing to shutter its cryptocurrency staking service would not affect its staking program. Coinbase noted that the announcement proves that Kraken was not offering a staking program but a yield product. 

The San Francisco-based exchange assured clients its staking program differs from Kraken’s. It added that the service does not constitute security. 

“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,” Grewal said in a screenshot shared on Twitter by Frank Chaparro, a journalist, and editor at large at The Block.

In an attempt to further explain the distinction between Coinbase and Kraken’s staking program, Grewal said customers’ rewards heavily depend on the rewards paid by the protocol.

Furthermore, Chaparro disclosed in the tweet that the exchange is committed to engaging the SEC in a legal battle if the regulator attempts to crack down on its crypto-staking service.

(By LELE JIMA)