Coinbase has also relaunched crypto staking for people in New York, the first state where users can earn rewards on Ethereum and Solana using the platform. The decision was made after permission was granted by the state regulators under the administration of Governor Kathy Hochul. The move lifted a long-standing ban that had limited access to one of the most sought-after yield-generating functions within the crypto market.
Coinbase Reopens Staking for New York Users
The approval is in effect, and now New York customers are able to delegate tokens such as ETH, SOL, and other supported digital assets directly through Coinbase and engage in network validation and receive staking rewards payable in native cryptocurrencies.
The ruling makes New York one of the limited states in the U.S. to relax its position regarding staking services. Coinbase estimates that thousands of people in four other states, California, New Jersey, Maryland, and Wisconsin, have missed out on over $130 million in potential staking returns because they are currently locally restricted. The company opined that the approval of New York would lead other regulators to reconsider their stance on the matter since the national debate on staking-as-a-service is still in development.
Glad to see progress in NY. Staking services aren’t securities – hope all other states stuck in the past can drop their lawsuits and catch up soon (CA, WI, NJ, MD).
Happy staking, New Yorkers! https://t.co/K8oUunzpXM
— Brian Armstrong (@brian_armstrong) October 8, 2025
Coinbase has been maintaining that it does not regulate its staking product as securities, a claim that the company claims has been supported by new developments on the state and federal levels. Over the last year, several states such as Vermont, Illinois, Kentucky, Alabama, and South Carolina have either revoked or canceled enforcement measures against the company as it stakes.
Coinbase’s Plea for Clearer Regulation
Paul Grewal, Coinbase’s Chief Legal Officer, has often requested to introduce federal legislation to harmonize crypto-regulation within the country. He has criticized the so-called fragmented, state-by-state enforcement environment that leaves companies operating under inconsistent rules.
The relationship between the exchange and U.S regulators has been fraught since mid-2023, when the SEC and various state authorities claimed that Coinbase was selling unregistered securities as part of its staking offering. The company later suspended staking on behalf of customers in California, New Jersey, South Carolina and Wisconsin when the lawsuits were still pending.
Momentum has since changed. Illinois dismissed its suit on April 3, 2025, and Kentucky followed on April 1, and South Carolina followed on March 27. Nonetheless, New Jersey and Washington State regulators have affirmed that they are still pursuing their claims against Coinbase, which means that the matter is not completely resolved.
The withdrawal by South Carolina was followed by the introduction of the Strategic Digital Assets Reserve Act by the state, which would permit the deployment of up to 10% of particular funds held by the state into cryptocurrencies like Bitcoin.
The reintroduction of Coinbase staking in New York is associated with the introduction of more positive changes in crypto regulation in the U.S. In August 2025, the SEC provided more specific guidance that some liquid staking tokens, in particular, the stETH issued by Lido, do not qualify as securities transactions.
The Lido Labs Foundation, which is led by Sam Kim as CLO, reported that the clarification “provided long-awaited regulatory certainty” and would probably rejuvenate institutional interest in the industry.
Analysts consider that this position may also influence the approach taken by the regulators regarding wrapped tokens and other crypto derivatives of similar design. The change in policy has already contributed to the growth of exposure in the conventional investment products to stakes.
Brief Look At the Crypto ETF Space
At the beginning of this month, Grayscale unveiled the first spot Ethereum and Solana ETFs with staking available in the United States. Further, digital asset investment vehicles registered a record inflow of about $5.95 billion last week. A $1.48 billion influx flowed into Ethereum-based funds and $707 million in Solana-focused funds, according to CoinShares data.
Under these developments, Coinbase is still expanding its business lines beyond the exchange trading area. The company has become custodian to eight of the 11 approved Bitcoin ETFs in the United States, a sector that has brought in a revenue of more than $43 million in the last quarter of 2024. Its acquisition of futures and options markets was further strengthened by its acquisition of derivatives exchange Deribit in January this year, valued at $2.9 billion.
In the meantime, the citizens of New York can stake using Coinbase, and those in California, New Jersey, Maryland, and Wisconsin are still waiting to be allowed to do the same.
Also Read: SEC to Formalize Innovation Exemption for Crypto By Year’s End
Source: https://www.cryptonewsz.com/coinbase-crypto-staking-new-york-regulatory/