Cryptocurrency exchange Coinbase said New York residents can now stake their assets, following approval from state regulators.
In a Wednesday blog post, Coinbase said its users could begin earning rewards from staking in Ether (ETH), Solana (SOL), and other assets. The company credited New York Governor Kathy Hochul for “embracing progress and providing clarity,” leading to the approval, with plans to continue expanding staking services across the US.
“This is a big win for New Yorkers, and a step toward ensuring every American has equal access to the future of finance,” said Coinbase. “But our work is not done. We estimate that residents in California, New Jersey, Maryland, and Wisconsin have collectively missed out on more than $130 million in staking rewards due to state-wide bans.”
The move into New York followed several US state regulators dismissing lawsuits against Coinbase over allegations that the exchange’s staking services violated securities laws. About 10 states filed similar lawsuits in 2023, but authorities in South Carolina, Alabama, Kentucky, Vermont and Illinois dropped the cases this year.
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Coinbase’s approval in New York suggests that state-level regulators may be changing their approach to staking. Following the 2023 lawsuits, the company paused staking services in four US states to comply with regulatory orders.
Not all state authorities are on board, however. Following the Securities and Exchange Commission (SEC) dismissing a federal lawsuit against Coinbase in February, weeks after the changeover in presidential administrations, Oregon Attorney General Dan Rayfield filed a lawsuit against the exchange for allegedly offering unregistered securities to state residents.
The Oregon AG said in April that state authorities “must fill the enforcement vacuum being left by federal regulators.” Coinbase has asked the US Justice Department to step in to prevent similar lawsuits from being filed.
Coinbase is significantly expanding its services
On Friday, Coinbase said it had applied for a National Trust Company Charter with the US Office of the Comptroller of the Currency, making it one of many US crypto companies to do so. The exchange said at the time that it had “no intention of becoming a bank,” but was pursuing the charter as a bridge between crypto and traditional finance.
Coinbase CEO Brian Armstrong said in September that the company intended to replace traditional banks by turning the exchange into a crypto “super app.”
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