Coinbase Says It Will Cease Providing Staking Services in Four US States

According to a statement, cryptocurrency exchange Coinbase will not sign up new staking customers in four US jurisdictions.

Due to continuing regulatory challenges, the biggest cryptocurrency exchange in the world, Coinbase, stated on Friday that it would no longer accept new staking assets from users in four US jurisdictions.

Coinbase’s staking program has been met with opposition from the U.S. Securities and Exchange Commission (SEC) and several state authorities, who believe it constitutes the selling of unregistered securities. When Coinbase announced a loan product in June that would enable customers to earn interest on their cryptocurrency holdings, the SEC filed a lawsuit against the company for potential violations of securities laws.

Coinbase has steadfastly maintained that its staking and lending products constitute securities, maintaining that they are crucial to the growth and safety of the decentralized cryptocurrency system. The firm also claimed that the SEC is unfriendly and unsure about the crypto business.

Coinbase has stated in a blog post that it is working with policymakers in multiple states to ensure that its staking program remains accessible to all customers despite orders from California, New Jersey, South Carolina, and Wisconsin prohibiting the company from accepting new staking assets from residents of those states.

Customers who have staked their cryptocurrency prior to placing purchases will not be impacted, said Coinbase. The firm has promised to contact impacted consumers and offer further details through the support portal.

Coinbase said that, notwithstanding legal procedures in other jurisdictions, its staking services would continue as usual.

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