Coinbase CEO Brian Armstrong has made it clear that the company’s staking service might shut down.
The crypto firm boss said on August 17 that the firm would shut down its staking services if regulators wanted it to censor transactions as a validator.
According to Armstrong, in a hypothetical situation like that, the firm would have to focus on the bigger picture of preserving the network integrity by shutting its services.
He continued that the firm could also mount a legal challenge to the request from the authorities.
Armstrong was responding to a question from rotkiapp founder Lefteris Karapetsas.
Coinbase is one of the largest staking solution providers. The firm offers crypto-staking solutions for Ethereum, Algorand (ALGO), Cosmos (ATOM), Cardano (ADA), Solana (SOL), and Tezos (XTZ).
It also recently began offering Ethereum staking for institutional clients in early August.
Meanwhile, reports have emerged that the SEC was investigating Coinbase’s staking product.
In light of the US sanction on Tornado Cash, the crypto community has become increasingly worried that regulators could force centralized entities under their jurisdiction to censor transactions on the Ethereum protocol.
Related- Coinbase Pro to Shut Down in 2022
