Kraken recently received a crackdown from the SEC (Securities & Exchange Commission). It is being said that Coinbase is taking a different route in terms of staking products. The chief lawyer of Coibase, Paul Grewal, has informed that this staking service provided by cryptocurrency is essentially different from their peer service firm, Kraken.
This latest statement from Coinbase is coming right after Kraken received some harsh criticism from the SEC and wants to maintain a sound reputation in the cryptocurrency market.
Troubleshooting Statement From Coinbase
Paul Grewal, the chief lawyer, stated on 21st February that the service platform is very different from Kraken. In this question and answer session, Grewal addressed the queries of the stakeholders that there should be concern regarding Coinbase after the Kraken incident.
He further added that the users always own their cryptocurrencies and this ownership difference matters a lot. Their user agreement was updated on 15th December that mentioned the facilitation of staking assets on behalf of users. On the other hand, Coinbase can never replace the Ether lost during slashing. This indicated the mechanism of the blockchain used to penalize the adverse behavior after reducing the tokens of the validator.
User Management And Queries
Grewal has said that Coinbase users have the complete right of returning to the firm despite not being able to pay the returns. He emphasized the registration of the exchange mentioned as a publicly traded company indicating transparency that is also different from Kraken.
Kraken was accused by their users of losing control of the tokens while investors were given larger returns. Grewal said that regulatory check-ups are needed to maintain clarity. He also made a tweet on 13th February mentioning that staking does not automatically imply a security transaction. Coinbase is also fighting a legal case against the SEC.
