Coinbase Suspends Algorand Staking After Wells Notice From SEC

• Coinbase has shut down Algorand staking rewards for retail users after receiving a Wells notice from the SEC.
• ALGO trading will be available for all users while governance rewards will continue for institutional investors.
• The price of ALGO has tanked more than 6% since the suspension of its staking rewards.

Coinbase has shut down staking rewards for Algorand. The American crypto exchange reportedly took the decision in light of the Wells notice that was recently issued to it by the United States Securities and Exchange Commission (SEC). A Wells notice is a formal declaration of the securities regulator’s intent to initiate enforcement actions against a firm.

Staci Warden, the chief executive of the Algorand Foundation, took to Twitter earlier today to brief the community on the situation. According to Warden, Coinbase evaluated its services following the intensified regulatory scrutiny and decided to suspend Algo rewards for retail customers due.

Warden clarified that the American exchange will extend support to users who wish to participate in the governance process directly as individual governors. The crypto exchange will also continue to offer ALGO …

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