- Coinbase, the largest cryptocurrency exchange in the US, has temporarily suspended its staking services in four states due to regulatory pressure.
- The affected states are California, New Jersey, South Carolina, and Wisconsin.
- The decision to suspend staking services in these states was made in response to requests from regulatory authorities.
Coinbase Suspends Staking Services in Four US States
Coinbase, the largest cryptocurrency exchange in the United States, has announced the temporary suspension of its staking services in four states. The affected states are California, New Jersey, South Carolina, and Wisconsin. This decision comes as a result of regulatory pressure from authorities in these states.
Regulatory Pressure Leads to Suspension
The suspension of staking services in these four states is a response to requests from regulatory authorities. While Coinbase has not provided specific details about when and under what conditions the services will be reinstated, it is clear that the company is complying with the demands of these regulatory bodies.
On July 6th, a total of 10 different US states initiated investigations into Coinbase’s staking services. However, only four of these states ultimately decided to impose a ban. The states where Coinbase continues to offer staking services include Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington.
Staking as a Security?
The regulatory authorities in the affected states argue that staking activities fall under the category of securities. Coinbase, on the other hand, strongly disagrees with this claim. In a statement, the company emphasized its commitment to staking and highlighted the benefits of this practice, stating that most major blockchains are secure, transparent, and environmentally friendly.
“We do not agree with the claims that our staking services are securities. However, at this point, we will fully comply with the state orders without the opportunity to defend ourselves. We stand by staking. Today, staking is built on nearly all major blockchains, which are open, secure, and environmentally friendly.”
Continued Operations in Other States
While staking services have been suspended in the four affected states, Coinbase’s staking operations in other US states remain unaffected. The company’s Chief Legal Officer, Paul Grewal, previously stated that staking services should not be considered securities and warned against the potential consequences of incorrect regulatory decisions.
