Coinbase’s staking services have been suspended in California, New Jersey, South Carolina, and Wisconsin due to regulatory concerns.
Coinbase has announced that users residing in specific states will be temporarily restricted from accessing certain staking services until further notice. This decision comes after the first pre-motion hearing in the ongoing SEC case against the company.
Coinbase has clarified that the suspension of staking additional assets is solely applicable to users in California, New Jersey, South Carolina, and Wisconsin. On the other hand, users in Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington can continue staking cryptocurrencies without any interruption, maintaining their previous staking operations.
On June 6, the SEC filed a lawsuit against Coinbase, alleging that the crypto exchange has been functioning as an unregistered security broker since 2019. This legal action has resulted in regulatory responses from authorities in 10 U.S. states, leading to the temporary suspension of specific services. However, Coinbase has refuted the majority of the allegations made against the company.
Coinbase firmly denies the classification of their staking services as securities and expresses strong disagreement with the allegations. Nevertheless, the company will adhere to the preliminary state orders where necessary, despite not having had a chance to present their defense.
Both state and federal regulators have initiated actions against various crypto firms providing staking services, citing violations of securities laws. In February, Kraken settled with the SEC for $30 million, leading to the exchange’s discontinuation of staking services or programs for U.S. clients.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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