Here are the updates from Coinbase’s latest earnings call! On the 9th of August, Coinbase told the community about staking and the need for more regulations.
Our Q2'22 financial results are in.
Check out our letter to shareholders 👇https://t.co/RuDx4bPADb
— Coinbase (@coinbase) August 9, 2022
Updates on Staking
Coinbase is facing the meltdown of cryptocurrency prices and less revenue from user transactions. In the latest earnings call, Coinbase CEO Brian Armstrong mentioned that the company is not focusing on the profit they focus on staking. The CEO added that it is necessary to distinguish between things in their control and out of control.
In the shareholder letter, Coinbase said, to keep users around, they offer users the ability to stake crypto. According to Coinbase, staking “helps ensure blockchains run efficiently and provides protocol users with an opportunity to earn rewards for performing critical operational services.”
So far, Coinbase considers its staking as an early win for the company. The crypto exchange is prioritizing staking to make Coinbase the best staking provider in crypto. Coinbase added that staking is a part of its business model in preparation for ‘The Merge’.
Updates on Regulations
Coinbase CEO Brian Armstrong also addressed regulations in the latest earnings call. According to him, the current crypto regulations have progressed compared to the past year. But, the more regulations in crypto, the better for Coinbase.
Previously, Coinbase received a notice from The SEC regarding assets that can be considered securities. In the earnings call, Coinbase is very open to helping investors to explain their assets in detail.
In the shareholder letter, Coinbase said they submitted a petition to The SEC asking them to initiate “a public process to develop updates to its regulations that would enable the development of the crypto securities.”
Coinbase also has engaged with the European Union on their Markets in Crypto Assets (MiCA) proposal and other jurisdictions to make a “clear regulatory regime for crypto.”