Coinbase has reassured users that its staking services would continue and "may actually expand" despite the recent crackdown by the United States Securities and Exchange Commission (SEC) on staking services provided by centralized providers.

Coinbase detailed its modified staking terms and conditions beginning on March 29 in a new client email that was noted by well-known trader AltcoinPsycho through Twitter on March 10.

The representative from Minnesota is also commenting on the Biden administration's criticism of the 50 million Americans who own digital assets.

With the updated rules, Coinbase makes it clear that customers receive benefits through decentralized protocols rather than the exchange itself.

“Coinbase acts only as a service provider connecting you, the validators and the protocol, as opposed to offering a share of its own staking rewards(...) Your staked assets will continue earning rewards. If you want to continue staking, no action is required. Your staking rewards may actually increase.”

While the SEC may object to Coinbase's staking awards continuing and maybe expanding, the obvious separation between protocol rewards and service providing appears to prevent any gray area problems, such as those recently experienced by rival exchange Kraken.

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