Coinbase, the prominent cryptocurrency exchange, has announced the temporary suspension of its staking operations in California, New Jersey, South Carolina, and Wisconsin. This move comes as Coinbase engages in discussions with regulators from these states. The state regulators have the authority to issue preliminary orders, even before legal proceedings commence.
Coinbase is facing legal actions from regulators in additional states, including Maryland, Vermont, Kentucky, Illinois, Alabama, and Washington. However, the staking services provided by Coinbase remain unaffected in those states, and customers can continue staking their cryptocurrencies as before.
These developments follow the Securities and Exchange Commission’s (SEC) filing of a lawsuit against Coinbase on June 6. The SEC alleges that Coinbase acted as an unregistered broker, a claim vehemently denied by the exchange. Subsequently, regulators in the aforementioned states initiated their own legal proceedings against Coinbase.
Despite these legal challenges, Coinbase maintains a firm stance. The exchange argues that staking services should not be considered securities and calls upon the SEC to establish reasonable crypto policies instead of relying solely on regulation-by-enforcement.
Coinbase emphasizes that taking the easy path of cutting off staking services in the states where legal proceedings have been initiated would be legally incorrect and detrimental to both customers and the future of the cryptocurrency ecosystem. The exchange stands by its belief that collaboration and the establishment of pro-crypto policies are necessary to make the United States a thriving hub for cryptocurrencies.
As the legal battles continue, Coinbase remains committed to advocating for the crypto community and working towards a favorable regulatory environment in the United States.