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- Coinbase said on Tuesday that it has suspended reward withdrawals for ETH.
- The exchange said the reason for the halt was a “technical issue”.
- The US Securities and Exchange Commission is likely to file enforcement action against Coinbase in the coming weeks.
current encryption Alcohol market It is one of the most difficult genres in history. It is particularly difficult for centralized cryptocurrency exchanges, which have experienced massive regulatory pressure.
The environment is so fragile that centralized exchanges face scrutiny for everything they do. For example, Coinbase just suspended ETH mask Reward draws amidst their meat with the Securities and Exchange Commission.
Coinbase stops reward withdrawals from ETH
Coinbase, the world’s second largest centralized crypto exchange, announce On Tuesday it was suspended ETH Withdraw rewards from Staking.
The exchange said the downtime was due to a “technical issue” that the team had already identified. A fix will be published within the next 48-72 hours, and reward withdrawals of ETH will be re-enabled.
It is unclear what the Coinbase error refers to. Furthermore, bugs that prevent regular activity are usually resolved as quickly as possible. In the case of Coinbase, it will take up to three days.
While it’s likely that Coinbase is indeed facing a bug, it’s also possible that the exchange is preparing for possible regulatory action US Securities and Exchange Commission (SEC).
Can the SEC be blamed for stalling?
Coinbase received Wells’ notice from the SEC in March. Receiving a Wells Notice means that the regulator plans to file an enforcement action against the recipient.
On Tuesday, US broker-dealer and trader Berenberg Capital Markets said the SEC will likely file an enforcement action in the coming weeks. The enforcement action is likely related to Coinbase’s staking services.
This is because other centralized exchanges such as A legendary sea monster Their storage services for selling unregistered securities have previously been ordered to stop.
However, if Coinbase receives such an order, the exchange has vowed to go to court and retaliate.
on the flip side
- The technical issues Coinbase is talking about may also be actual technical issues unrelated to the upcoming SEC proceedings.
Why should you bother
Coinbase is the second largest crypto exchange in the world. However, users should always be aware of potential issues centralized exchanges may encounter and consider self-custody.
Read more about Lido enabling stETH withdrawals:
Lido enables stETH withdrawals: see who withdraws how much
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