State regulators clear Coinbase to relaunch staking services on ETH and SOL
Coinbase has received regulatory approval to launch its crypto staking services in New York, allowing residents to earn staking rewards on major assets like Ethereum (ETH) and Solana (SOL). The move marks a significant policy shift in one of the most tightly regulated U.S. states for digital assets.
In a statement released Wednesday, Coinbase said the decision represents a major win for financial innovation and consumer access in the region. The company thanked Governor Kathy Hochul’s administration for “embracing progress and providing clarity” that made the approval possible.
“This is a big win for New Yorkers, and a step toward ensuring every American has equal access to the future of finance,” Coinbase said in a post.
The exchange estimates that residents in California, New Jersey, Maryland, and Wisconsin have missed out on over $130 million in staking rewards due to ongoing state-level restrictions — a loss it hopes regulators in those regions will soon reconsider.
Regulatory Reversals Signal Shifting Attitudes
Coinbase’s approval comes after a year of regulatory turbulence across the U.S. crypto sector. In 2023, roughly ten states filed lawsuits alleging the exchange’s staking program constituted the sale of unregistered securities. However, South Carolina, Alabama, Kentucky, Vermont, and Illinois have since dropped their cases, suggesting a softening stance toward staking-based services.
The New York approval could signal a turning point, indicating that state regulators are reassessing earlier enforcement actions in light of growing institutional adoption and consumer demand for on-chain yield opportunities.
“This development underscores a more nuanced regulatory approach to staking as a legitimate, yield-generating activity rather than a securities issue,” said a digital asset compliance analyst at a U.S. fintech firm.
Coinbase Expands Nationally Amid Legal Challenges
Despite the progress, regulatory uncertainty remains. While the SEC dismissed its federal lawsuit against Coinbase earlier this year, the Oregon Attorney General has filed a new case accusing the exchange of offering unregistered securities to state residents.
At the same time, Coinbase is broadening its U.S. footprint, recently applying for a National Trust Company Charter with the Office of the Comptroller of the Currency (OCC). The exchange emphasized it has “no intention of becoming a bank,” but views the charter as a way to bridge crypto and traditional finance.
Coinbase CEO Brian Armstrong has repeatedly stated his vision to transform the platform into a “crypto super app” — redefining how Americans earn, spend, and manage digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.