Coinbase Faces Ongoing Legal Battles Over Staking Services

According to Chief Legal Officer Paul Grewal, California, New Jersey, Maryland, Washington, and Wisconsin remain actively engaged in legal action as of April 25.

Four of these states—California, New Jersey, Maryland, and Wisconsin—have issued cease-and-desist orders, blocking Coinbase from offering staking services to new users. Washington maintains an ongoing lawsuit but has not banned staking activities.

$90 Million in User Rewards Impacted

Coinbase executives argue that these legal barriers prevent users from accessing staking rewards, which have totaled over $90 million since 2023. The firm contests the states’ claims, asserting that staking services do not qualify as securities under U.S. law.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) dismissed its staking case against Coinbase with prejudice, a significant win for the company. Following the SEC’s decision, Illinois, Kentucky, South Carolina, Vermont, and Alabama withdrew similar lawsuits.

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Regulatory Uncertainty Remains

Despite some legal victories, Coinbase’s ongoing battles highlight the broader uncertainty facing crypto staking in the U.S. The firm continues to advocate for clearer regulations that recognize staking as a legitimate service rather than an unregistered securities offering.

The post Coinbase Faces Ongoing Legal Battles Over Staking Services appeared first on Coindoo.