Coinbase halts crypto staking in four US states

abdelaziz Fathi

America’s largest crypto exchange, Coinbase told its customers from California, New Jersey, South Carolina, and Wisconsin that they will no longer be able to stake digital tokens on its platform until further notice.


The decision, which doesn’t affect the already staked cryptos, follows the regulatory requirements imposed by these states, which restrict staking services offered to retail users. Coinbase clarified that customers located in other states, including Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington, can continue to stake cryptocurrencies” just as they were before.”

“We strongly disagree with any allegation that our staking services are securities. But we will fully comply with the preliminary state orders where required, even though that comes before we’ve had an opportunity to defend ourselves,” Coinbase wrote in a blog post.

The move comes in the wake of a lawsuit filed by the Securities and Exchange Commission (SEC) against Coinbase over certain products. In particular, the agency is looking at aspects of Coinbase’s staking service Earn, as well as investment and custody services, and part of its spot trading business.

The SEC alleges that the listed company broke securities law by acting as an unregistered broker and failing to register as an exchange. Additionally, the agency classified Coinbase Earn’s staking program, which allows investors to earn interest on their tokens, as an unregistered security.

In a coordinated effort, regulators from 10 states also filed charges against Coinbase on the same day. These regulators argue that Coinbase’s staking services should be considered securities under state laws.

According to the complaint, Coinbase’s prime brokerage, exchange, and staking programs have been violating securities laws. The regulator detailed that the exchange has disregarded regulatory frameworks and evaded disclosure requirements mandated by U.S. securities law for a couple of years.

The SEC claims that at least 13 crypto assets offered by Coinbase, including Solana’s SOL, fall under the category of “crypto asset securities” as defined by the regulator.

Coinbase, during its public offering, disclosed the regulatory risks and the possibility that some of its products might fall under regulatory oversight. However, the SEC said that Coinbase continued to operate without fulfilling the necessary registration requirements as an exchange. Overall, this discrepancy between Coinbase’s public statements and its alleged non-compliance with registration regulations forms a key aspect of the SEC’s case against the company.

AS a result, the American exchange is looking to international markets to drive growth amid fears of the clampdown on crypto businesses in the US. Alongside its US authorisation, Coinbase also holds licenses from Italy, the Netherlands, Ireland and Germany, as well as the UK Financial Conduct Authority.

Read this next

Digital Assets

MicroStrategy buys more bitcoins as crypto bet loses +$600M

MicroStrategy has purchased another 5,445 bitcoins for approximately $147.3 million in cash, adding to its massive cryptocurrency holdings during a sharp drop in the price.

Digital Assets

TYRION Set To Decentralize The $377B Digital Advertising Industry

TYRION, a groundbreaking player in decentralized digital advertising, has launched its innovative blockchain-based platform aimed at disrupting an industry long dominated by centralized tech giants, by addressing issues like lack of transparency, data privacy, and declining ROI, while also offering features like social platform integration, robust analytics, and a deflationary mechanism for its native $TYRION token.

Institutional FX

TD Bank sells TD Cowen’s $1.3B business to Marex

London-headquartered commodities broker Marex has agreed to acquire TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Retail FX

ThinkMarkets reports flat revenues, lower profit for FY2022

The UK business of Melbourne-based broker, ThinkMarkets, today reported its financial results for the fiscal year ending December 31, 2022. The multi-asset platform, trading in the UK as TF Global Markets UK, had seen mixed results in a couple of key areas over a yearly basis.

Institutional FX

Finalto named best CFD Liquidity Provider at Ultimate Fintech Awards Global 2023

“This recognition is a testament to our commitment to providing exceptional liquidity services, innovative solutions, and outstanding customer support. We would like to express our sincere gratitude to our clients and partners for their trust and support. We will continue our efforts and look forward to delivering even greater value to our clients in the future.”

Digital Assets

New Cryptocurrency Meme Kombat ($MK) Launches Public Token Presale, Staking Platform

Meme Kombat, a new gaming platform blending the allure of internet memes with competitive battle arenas, has announced that the presale for its native $MK token is now live, offering a high APY of 112% and creating significant buzz in the crypto and Web3 communities.

Digital Assets

Hydranet Launches Layer 3 DEX: A Game Changer for Trustless Cross-Chain Trading

Hydranet has unveiled its groundbreaking Layer 3 trading platform, Hydranet DEX, that allows for near-instant, low-fee, and trustless cross-chain trading between Bitcoin and Ethereum ecosystems, marking a significant milestone in the project’s development journey.

Digital Assets

Coinbase gets nod to launch crypto services in Spain

Coinbase has scored Anti-Money Laundering (AML) compliance registration with Spain’s central bank as part of its continued expansion efforts in Europe.

Retail FX

Traders Union Experts Discuss London Session Forex Time In Nigeria

A recent report from Traders Union (TU) suggests that Nigerian Forex traders have a golden opportunity during the London Forex Session, highlighting the importance of time synchronization and strategic trading hours to optimize effectiveness in the rapidly growing Nigerian Forex market.