Coinbase Lawyer Says Its Staking Is Fundamentally Different To Kraken’s

Coinbase Staking Different from That of Kraken

Grewal's first point of differentiation was that Coinbase users always retain ownership of their cryptocurrencies.

Grewal added that a further distinction was that its clients have a "right to the return," and the company cannot "simply decide not to pay any returns at all." Another important point of differentiation, he said, is the exchange's registration as a publicly traded company, which gives customers "deep transparent insight into our financials."

SEC’s Complaint Against Kraken

In contrast, in the Securities and Exchange Commission's complaint against Kraken, investors were offered "outsized returns untethered to any economic realities," and Kraken was also able to pay "no returns at all," according to the allegations in the complaint.

However, Coinbase intends to fight, as CEO and co-founder Brian Armstrong suggests that the company is prepared to challenge the regulator and go to court.