The U.S. Securities and Exchange Commission ordered rival exchange Kraken to end its crypto staking services in exchange for paying a $30 million settlement, causing the stock of the leading U.S. cryptocurrency exchange Coinbase (COIN) to experience its biggest daily loss in seven months.
Coinbase makes a substantial profit from its cryptocurrency staking services, and the SEC is purportedly cracking down on such services, which is why COIN's value has decreased.
COIN had a 14.13% decline as of the time of writing, closing the day at $59.63 from its opening price of $68.51 on Thursday.
When Coinbase was under investigation by the SEC for its cryptocurrency listings in July, it was the last time the stock had such a significant fall on a trading day.
The agency looked into whether the exchange let American users to trade cryptocurrency tokens that were supposed to be securities but weren't.