Coinbase CEO Defend Staking Services and Working with CFTC for Derivatives Platforms

In a recent podcast with Bankless, Coinbase CEO Brian Armstrong has stated that the company's staking program is not a security and is prepared to defend this position in court. Armstrong's comments come as U.S. regulators target similar products offered by other firms. 

The clarification follows recent updates to Coinbase's staking service, which emphasized that rewards are earned through protocols and not directly from Coinbase.

Armstrong added that Coinbase was also working with the CFTC to launch its derivatives platform. Coinbase does not offer any crypto derivative trading to its users in the U.S..

Coinbase's defense of its staking program comes amid increased scrutiny of the cryptocurrency industry by regulators. The SEC has recently issued warnings to several firms offering staking products, stating that they may be considered securities and thus subject to regulation. Coinbase's response underscores the company's commitment to regulatory compliance and its confidence in the legality of its staking program.