Coinbase Urges Five U.S. States to End Staking Lawsuits

Coinbase is urging regulatory authorities in five U.S. states to abandon ongoing lawsuits over its cryptocurrency staking services, warning that the continued legal actions are harming consumers and exacerbating market uncertainty.

In a recent blog post, the publicly traded crypto exchange asserted that cease-and-desist orders still active in California, New Jersey, Maryland, Washington, and Wisconsin have prevented residents from participating in staking activities, costing them over $90 million in potential rewards since June 2023.

The lawsuits stem from broader regulatory action initiated in 2023, when the U.S. Securities and Exchange Commission (SEC) and ten states accused Coinbase of offering staking services classified as securities without proper registration. Some states intensified their approach by issuing immediate cease-and-desist orders that specifically restricted Coinbase — and only Coinbase — from enrolling new assets for staking.

Coinbase emphasized that most regulators have either settled or withdrawn their actions, framing the remaining lawsuits as increasingly untenable. “Continued litigation by the holdout states is more indefensible than ever,” the company stated, warning that these actions “do not protect consumers — they confuse them and expose them to greater risk.”

As of late April, staking services remain available from several other exchanges, including Kraken and Binance.US, though access varies depending on local regulations.

The legal pressure on Coinbase intensified further when Oregon Attorney General Dan Rayfield filed a lawsuit in late April, accusing the company of failing to shield consumers from unregistered and risky digital assets, allegedly violating Oregon’s securities laws.

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