Coinbase announced on Wednesday that residents of New York can now stake cryptocurrencies including Ethereum (ETH) and Solana (SOL) directly on its platform, following regulatory approval from state authorities.
The move restores access to staking services for millions of New Yorkers, marking a significant change in one of the country’s most tightly regulated crypto markets.
Coinbase framed the approval as a milestone for financial inclusion, crediting Governor Kathy Hochul’s administration for providing clarity on staking programs. New York’s Department of Financial Services (NYDFS) has historically taken a strict approach to digital-asset activities under the BitLicense regime, which limited certain yield-based products.
Coinbase’s ability to relaunch staking in the state suggests a softening stance on services previously viewed as securities-adjacent under the U.S. Securities and Exchange Commission’s (SEC) Howey test framework.
The announcement comes after the SEC’s February 2023 enforcement against Kraken’s staking program, which led to a $30 million settlement and nationwide withdrawal of its service. Coinbase has maintained that its staking program differs because it merely facilitates network participation rather than pooling customer assets for profit.
The company recently prevailed in several state-level challenges, including dismissals in Illinois, Kentucky, and South Carolina, reinforcing its argument that staking-as-a-service is not a security.
New York’s approval could influence other states still restricting staking — Coinbase estimates residents in California, New Jersey, Maryland, and Wisconsin have lost over $130 million in potential rewards.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/coinbase-gains-new-york-approval