Coinbase to withdraw over 70k staked ETH amid SEC lawsuit

coin base As of June 8, Nansen said it accounted for about 79% of entities waiting to withdraw their staked Ethereum (ETH). Dashboard.

The exchange wants to withdraw 70,057 ETH (approximately $129 million) of the 88,121 ETH tokens pending withdrawal at the time of writing.

Coinbase Withdrawal Demand Upward Trend Follows US The Securities and Exchange Commission (SEC) sued the exchange on June 6 for operating as an unregistered broker, exchange and clearing house.Regulators further argued that the staking program falls under unregistered securities Recruitment. Coinbase has consistently insisted it will continue its staking service.

Meanwhile, this is not the first time that regulatory pressure has forced US-based entities to process staked ETH withdrawals. In February, Kraken ended its staking service for US users, automatically unstaking its assets after completing the Shanghai upgrade.

Coinbase redeemed 2% of cbETH on June 6

Here’s evidence of SEC pressure: Coinbase Wrapped Stake ETH (cbETH) is on fire. According to Coinbase 21Shares researcher Tom Wan burnt Approximately 27,280 cbETH tokens, or 2% of the cbETH supply, were supplied on June 6 after the lawsuit.

data According to Dune analysis, this trend continued until June 7, when the exchange burned off 8,530 cbETH tokens, and within two days the total redemption exceeded 35,000 tokens. This is the fastest pace in over a month.

Meanwhile, Coinbase remains the second largest ETH liquid staking company after Lido. According to DeFiLlama, the total amount of assets locked on cryptocurrency exchanges is $2.1 billion (1.14 million ETH tokens) data.

Will decentralized staking service providers benefit?

As the SEC continues to put pressure on the centralized bodies it serves, Alpha Please contributor Pickle said: Said The move could lead to “Increased migration to other decentralized providers” such as Lido.

Under Chairman Gary Gensler, the SEC has urged cryptocurrency exchanges that offer staking programs and interest-bearing products to comply with securities laws.

An article about Coinbase withdrawing over 70,000 stake ETH amid an SEC lawsuit first appeared on CryptoSlate.