Coinbase suspends staking services in four US states following orders from regulators

U.S. crypto exchange says only actions by regulators in California, New Jersey, South Carolina and Wisconsin require pause in additional asset staking.

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U.S.-based cryptocurrency exchange Coinbase has announced that it will temporarily block clients from staking additional assets in four states amid legal proceedings brought by local regulators.

In a July 14 blog post, Coinbase said users in California, New Jersey, South Carolina, and Wisconsin would not be allowed to use certain staking services until further notice. Following the U.S. Securities and Exchange Commission's June filing of a lawsuit against the cryptocurrency exchange for offering unregistered securities, regulators in 10 U.S. states have filed their own lawsuits , leading to the suspension of certain services.

"We strongly disagree with any claims that our staking services are securities," Coinbase said. "But we will fully comply with preliminary state orders if necessary, even if it comes before we've had a chance to defend ourselves."

According to Coinbase, only the actions of regulators in California, New Jersey, South Carolina and Wisconsin require a pause in staking additional assets. Users based in Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington are "eligible to stake crypto as they were before".

1/ As you may have heard, on June 6, 10 US states filed suit regarding retail staking services from Coinbase. Let's see what this means for our customers. pic.twitter.com/pQidr0Ijc9

— Coinbase ️ (@coinbase) July 14, 2023

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