• Coinbase’s stock suffered its biggest daily loss in seven months following a $30 million settlement deal between the SEC and rival exchange Kraken.
• The decline was caused by the SEC’s alleged crackdown on crypto staking services, which generate significant revenue for Coinbase.
• COIN closed at $59.63 on Thursday, signaling a 14.13% plunge from the day’s starting price of $68.51.
Coinbase Stock Plunges Following SEC Crackdown
Coinbase’s stock (COIN) has suffered its biggest daily loss in seven months after the U.S. Securities and Exchange Commission (SEC) forced rival exchange Kraken to shut down its crypto staking services in a $30 million settlement deal.
Decline Attributed to Crypto Staking Services
The decline in COIN’s value can be attributed to the fact that Coinbase generates significant revenue from its crypto staking services, and the SEC is allegedly cracking down on such services.
COIN Closes at 14% Loss
COIN closed at $59.63 on Thursday from the day’s starting price of $68.51 and is trading at $58.99 at the time of writing, signaling a 14.13% plunge.
Kraken Reaches Settlement Deal with SEC
Recall that Kraken reached a settlement deal with the SEC yesterday after months of regulatory probes over unregistered securities offered as staking services.
Coinbase Not Affected by Crackdown?
Coinbase’s legal officer claims that the exchange will not be affected by this crackdown as their on-chain staking services are different from those offered by Kraken.