Coinbase CEO Armstrong Says Not Shutting Down Staking Service

The country’s largest exchange will continue to offer staking services despite facing lawsuits over the service from federal and state regulators.

AccessTimeIconJun 7, 2023 at 8:26 p.m. UTC
Updated Jun 8, 2023 at 6:53 p.m. UTC

Crypto exchange Coinbase (COIN) will continue operating its crypto staking service despite facing lawsuits from state and federal regulators over the program and several of its other offerings, Coinbase CEO Brian Armstrong said Wednesday at the Bloomberg Invest Conference.

“We're not going to wind down our staking service,” Armstrong said. “Again, as these court cases play out, it's really business as usual.” He noted that the exchange’s staking service accounts for about 3% of overall net revenue.

His comments came after the SEC on Tuesday sued Coinbase for a swath of violations, including allegations the company sold unregistered securities. A ten-state coalition led by the Alabama Securities Commission also took aim at the exchange, slapping Coinbase with allegations the company’s staking program had violated various state securities laws.

Coinbase’s staking service is a cornerstone of the company’s strategy to diversify its largely trading fee-dependent revenue base. In 2022, roughly 90% of the company’s revenue came from transaction fees, but the company’s earnings have plunged as a prolonged crypto bear market has caused some investors to turn away from trading.

Armstrong insisted Coinbase would not be at risk of a bank-run-like rush of withdrawals similar to those some of its peers have suffered. “All the funds are backed one-to-one, and you don't have to take our word for it,” Armstrong said. “As a public company, we have auditors … who have gone in and verified all that.”

Edited by Stephen Alpher.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Elizabeth Napolitano

Elizabeth Napolitano is a news reporter at CoinDesk.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about