The U.S. Securities and Exchange Commission (SEC) has placed Coinbase under scrutiny for its staking programs.
Coinbase said they are being investigated by the SEC for their staking program.
Coinbase Under Focus
Coinbase has received subpoenas from the SEC for information and document flow about client programs, operations, and current and future products, according to the regulatory filing.
According to Coinbase’s statement, the investigation concerns the exchange’s staking programs, asset listing processes, asset classification, and stablecoin products.
Staking programs are an important source of income for investors, especially during the periods when the cryptocurrency markets bleed. Staking is the ability for investors to profit on crypto assets by empowering transactions to help verify and secure the blockchain network.
According to Coinbase’s latest earnings report, 8.5% of revenue in the second quarter was generated by staking programs.
In its latest shareholder letter, Coinbase said the SEC had submitted a voluntary information request and was not informed whether it was an official investigation.
In the letter to its shareholders, Coinbase also emphasized that they will actively work to ensure that the regulations to be made in the crypto sector are efficient and beneficial.
