Coinbase, a leading global cryptocurrency exchange, has announced its decision to discontinue accepting new staking assets from customers in four US states.
The move comes as Coinbase faces ongoing regulatory disputes, primarily with the U.S. Securities and Exchange Commission (SEC) and certain state regulators.
The SEC and state regulators have raised objections to Coinbase’s staking program, alleging that it involves the sale of unregistered securities.
In June, the SEC filed a lawsuit against Coinbase, accusing the exchange of violating securities laws by launching a lending product that allowed users to earn interest on their crypto assets.
Coinbase has strongly denied the classification of staking and lending products as securities. The exchange argues that these services play a vital role in the development and security of the decentralized crypto economy.
Furthermore, Coinbase has criticized the SEC for its perceived hostility and lack of clarity towards the crypto industry.
In a blog post, Coinbase stated that it is actively collaborating with policymakers in multiple states to ensure the continuity of its staking program for all customers.
However, four states—California, New Jersey, South Carolina, and Wisconsin—have issued orders mandating Coinbase to cease processing new staking assets for residents in those states.
Customers who have already staked their crypto assets prior to the issuance of the orders will not be affected by the discontinuation.
Coinbase assures affected customers that they will receive email notifications and directs them to its help center for additional information and assistance.
Coinbase emphasizes that its staking services will continue to operate without disruption in states where legal proceedings are still pending, indicating that customers in those areas can continue to utilize the platform’s staking offerings.
