- Coinbase’s staking program faces state-level legal actions totaling four lawsuits.
- Users in affected states miss out on over $90 million.
- Coinbase argues the bans are harmful and outdated.
Coinbase’s legal battles over staking services highlight regulatory clashes, with states enforcing bans impacting $90M in rewards and crypto market dynamics.
Coinbase’s staking services face legal pushback from four states, costing users $90M in potential rewards. California, New Jersey, Maryland, and Wisconsin have halted new user access. Meanwhile, Washington continues legal proceedings without current restrictions.
“The holdouts actively harm their consumers by barring their access to safe wealth generation tools like staking. They’ve cost these Americans tens of millions of dollars in potential earnings – and counting.” — Paul Grewal, Chief Legal Officer, Coinbase
Chief Legal Officer Paul Grewal criticizes these actions for their economic impact, stating that users have lost tens of millions. Coinbase vows to fight these bans, citing their overreach and negative consumer impact.
The absence of significant volatility in the crypto market suggests that price movements remain largely unaffected by these state actions. Ethereum, as the primary coin impacted, continues to see typical market-driven fluctuations since the lawsuits.
Historical trends show that regulatory challenges, like the 2023 Kraken case, yield temporary disruptions. However, Coinbase advocates suggest mislabeling its staking as risky skews consumer access, backed by a federal case dismissal in early 2025.
These events highlight broader challenges facing cryptocurrency exchanges amid evolving regulations. As Coinbase continues its legal battle, the outcomes may shape future crypto regulatory landscapes.