NewsletterCoinbase Earnings To Take A Hit With Crypto Staking, Regulation Hurdles?
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
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Why is Crypto Market Down Today (Dec 5)?
- US PCE Inflation: Wall Street Estimates, Expert Insights, What Crypto Market Can Expect?
- Seed Funding Vs Series A – Key Differences Explained
- Kalshi Extends Lead Over Polymarket With Its Data Now Live on CNBC and CNN
- Bitcoin, ETH, XRP, SOL’s Max Pain Price as Over $4B Options to Expire
- Aster Price Outlook as Buyback Wallet Burns 77.86M ASTER Worth $79.81M
- What’s Next for Dogecoin Price After Whales Scoop 480M DOGE?
- Can Solana Price Bounce Back to $200 by End of 2025?
- Cardano Price Prediction Ahead of Midnight Sidechain Launch — Is ADA Headed for $0.85?
- Sui Price Eyes $2+ as SEC Approves First 2X Leveraged SUI ETF
- Pi Network Price Shows Signs of Recovery as Unlock Rate Cools
