Coinbase’s CEO said the crypto exchange will continue operating its staking service despite lawsuits from state and federal regulators.
Brian Armstrong said at the Bloomberg Invest Conference that "We’re not going to wind down our staking service," after the firm was charged US Securities Exchange Commission (SEC) earlier this week.
“Again, as these court cases play out, it’s really business as usual,” Armstrong added.
On Tuesday, the New York listed firm was fined by the SEC for allegedly operating its platform as an unregistered securities exchange, broker, and clearing agency while failing to register as these services.
The US regulator also said it is charging the platform for failing to register the offer and sale of its staking-as-a-service platform.
Coinbase’s staking service is the cornerstone of its strategy to diversify its trading fee-dependent revenue base.
Last year, almost 90% of its revenues came from transaction fees, but the crypto markets prolonger bear run has turned investors away, causing investors to turn away from trading.
Armstrong poured cold water on fears that Coinbase may be at risk of heavy withdrawals, echoing those of bank runs seen at Silicon Valley Bank and Signature Bank earlier this year.