As of press time, the exchange is looking to withdraw 70,057 ETH (about $129 million) out of 88,121 ETH tokens.
Coinbase has consistently stated that it will continue to offer its staking services.
Meanwhile, this is not the first time that regulatory pressure has forced the US-based entity to process ETH withdrawals. In February, Kraken ended its staking service for US users and automatically unstaked their assets after the Shanghai upgrade was completed.
Coinbase redeems 2% of cbETH on June 6th
Evidence of SEC pressure can be seen in coinbase wrapped stacked eth (cbETH) is on fire. According to 21Shares researcher Tom Wan, Coinbase burn 2% of its cbETH supply, roughly 27,280 cbETH tokens, on June 6 following the lawsuit.
statistics Dune Analytics shows that trend continued until June 7, when the exchange burned 8,530 cbETH tokens, bringing total redemptions to over 35,000 tokens in two days – its fastest rate in a month.
Meanwhile, Coinbase remains the second largest entity for ETH liquid staking, behind only Lido. According to DeFiLlama, the total value of assets locked on the crypto exchange is $2.1 billion (1.14 million ETH tokens). statistics,
Will Decentralized Staking Service Providers Benefit?
With the SEC maintaining pressure on centralized entities providing services, Alpha Please, a contributor to Pickle, Said trick can lead to a “Increased migration to other decentralized providers” such as Lido et al.
Under Chairman Gary Gensler, the SEC has urged crypto exchanges offering staking programs and interest-bearing products to comply with securities laws.