Coinbase, one of the leading global cryptocurrency exchanges, has recently announced that it will no longer accept new staking assets from customers residing in four US states.
The decision comes as a result of ongoing regulatory conflicts involving the US Securities and Exchange Commission (SEC) and certain state regulators.
The SEC and state regulators have raised concerns regarding Coinbase’s staking program, alleging the sale of unregistered securities.
In fact, the SEC filed a lawsuit against Coinbase in June, accusing the exchange of violating securities laws through the introduction of a lending product that enables users to earn interest on their crypto assets.
Coinbase has strongly denied the classification of its staking and lending products as securities. The exchange argues that these offerings are fundamental to the growth and security of the decentralized crypto economy.
Furthermore, Coinbase has criticized the SEC for displaying hostility and uncertainty towards the crypto industry.
In a recent blog post, Coinbase stated that it is actively collaborating with policymakers in various states to ensure the continued availability of its staking program for all customers.
However, orders issued by authorities in California, New Jersey, South Carolina, and Wisconsin have compelled Coinbase to cease processing new staking assets for residents of those states.
Existing customers who have already staked their crypto assets will not experience any disruption due to these orders. Coinbase assures affected customers that it will provide email notifications and further details in the help center regarding the situation.
Coinbase clarifies that its staking services will continue to operate as usual in states where legal proceedings are still ongoing, emphasizing that these actions only impact the four specified states.