Coinbase suspends staking in four US states

Cryptocurrency exchange Coinbase уведомила clients in California, New Jersey, South Carolina and Wisconsin of the suspension of its service staking due to local regulatory requirements.

Users have lost the ability to deposit additional assets under this service. The decision will not affect assets that have already been staked.

The platform pledged to provide more information about anticipated changes in the coming weeks in the states’ help centres.

In other parts of the United States, the service continues to operate without changes.

On June 6, the SEC filed a civil lawsuit against Coinbase. The Commission alleged that the exchange engaged in unregistered offerings of securities in the form of a number of tokens. 

The Coinbase Earn staking program also came under the regulator’s scrutiny.

On the same day, ten state regulators levelled similar claims regarding the latter. In addition to those mentioned above in this list, the Maryland, Vermont, Kentucky, Illinois, Alabama and Washington securities regulators were involved.

“We strongly disagree with any assertion that the staking service constitutes a securities offering. But we will fully comply with preliminary injunctions where necessary, even if this occurs before we have had the opportunity to defend ourselves,” the exchange’s representatives said.

Coinbase had previously declined to change its business model amid the SEC lawsuit.

Earlier, ForkLog reported a decrease in the cryptocurrency exchange’s share in the Ethereum staking market amid pressure from U.S. regulators.