Coinbase continues to face legal pressure as five U.S. states pursue lawsuits over its staking program.
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.
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.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/coinbase-faces-ongoing-legal-battles-over-staking-services/