Coinbase, the prominent cryptocurrency exchange based in the United States, has announced a temporary halt on Ethereum (ETH) staking reward withdrawals, citing a minor technical problem. Although users will continue to accrue rewards, Coinbase anticipates that resolving the issue may take up to three days. The exchange’s staking service enables users to deposit ETH and other proof of stake cryptocurrencies, contributing to the security of respective blockchains while earning additional crypto rewards. Notably, this service offers a more accessible staking option, eliminating the requirement of a 32 ETH minimum deposit necessary for individual staking.
Despite staking services facing scrutiny from the U.S. Securities and Exchange Commission (SEC) regarding possible violations of securities laws, Coinbase has not yet been formally charged. However, in March, Coinbase received a Wells Notice from the SEC, indicating concerns about potential securities violations related to various Coinbase products, including staking. Coinbase remains steadfast in its belief that staking should not be classified as a securities offering and is ready to defend its position in court if the need arises.
Coinbase assured users that the temporary suspension of ETH staking is not connected to any regulatory or legal issues, although the exchange did not disclose specific details about the technical problem or provide an estimated timeline for its resolution. Coinbase reassured its users that they will receive further updates as soon as the issue is resolved.