Coinbase Earnings News: The US Securities and Exchange Commission’s (SEC) recent actions on various players in the crypto industry could potentially have a long term impact on giants like Coinbase. The SEC’s restrictions on Kraken’s staking program could well leave a dent in its revenue streams, if the regulatory action drags on to other players. Or the SEC wanted to send a warning to the crypto companies? In his recent remarks, the agency’s Chair Gary Gensler said the only way the crypto businesses would survive is if they completely abide by the relevant guidelines.
Know More: US SEC’s Gary Gensler: This Is Only Way Crypto Companies Will Survive
On the other side, Binance, another major crypto exchange, has its own sharing of worries as it struggles to find a banking partner to support its US Dollar transactions. Due to this, withdrawals and transactions in US Dollar are currently on temporary suspension at Binance.
Crypto Staking – Coinbase Earnings
Coinbase is set to report earnings for the quarter ending December 2022 on Tuesday, 21 February 2023. The quarter was marred by the FTX collapse that took the market to a crash, leaving all exchanges including Coinbase with huge dip in trades. While Coinbase’s earnings are largely dependent on the user trading, the recent crypto winter left a dent in its revenues. Hence, exchanges typically focus on making the most out of other revenue making streams like crypto staking. This could mean Coinbase losing some of these revenues if regulatory concerns worsen.
Coinbase takes a commission based on user rewards from staking. For example, a commission of 35% is charged on Cardano (ADA) and Solana (SOL) while that on Ethereum (ETH) is 25%. In the last quarter, Coinbase gained a combined $178.9 million from staking, custody, and interest income businesses. In addition to the staking woes, the SEC’s new proposed rules will make it stricter for businesses that secure assets for fund managers.
Also Read: Solana Mobile Saga To Reportedly Launch Next Week