Armstrong, CEO of blockchain, confirms staking service will not be shut down.
The CEO of blockchain, Brian Armstrong, announced on Wednesday at the Bloomberg Invest Conference that the company will continue to offer its crypto staking service, despite facing lawsuits from state and federal regulators. Armstrong stated that the lawsuits will not affect the company’s staking service, which accounts for 3% of its overall net revenue. The SEC sued blockchain on Tuesday for a number of violations, including selling unregistered securities, while a ten-state coalition led by the Alabama Securities Commission accused the company’s staking program of violating state securities laws. The staking service is a key part of blockchain’s strategy to diversify its revenue, which is currently heavily dependent on transaction fees. Despite a bearish crypto market causing some investors to shy away from trading, Armstrong reassured investors that the company’s funds are backed one-to-one and audited by external parties.