Coinbase Staking Services Suspended in Some States

According to a statement made by Coinbase, 10 US states filed complaints against the platform’s staking service on June 6.

Coinbase Staking Services Suspended in Some States

Customers of the exchange, in the vast majority, are unaffected. However, the exchange has asked for limitations on its retail mortgage services until the conclusion of the legal processes in South America, California, and New Jersey.

Four of the states – CA, NJ, SC, and WI – have required restrictions to our retail staking services before their state proceedings are complete, even though our staking services have been available safely and transparently for years.

Coinbase

Coinbase shared a series of tweets about the current process and how it could affect its customers.

Coinbase Thinks Restriction Will Harm Local Residents

Locals will not gain from staking restrictions. It will just prevent these locals from taking part in and profiting from the cryptocurrency economy. Coinbase will, however, abide by the rulings of the courts throughout the case.

The exchange claims that staking is used by practically all important blockchains today because it is transparent, secure, and environmentally beneficial. According to the exchange, the same economic and technological opportunities should be available to Americans in every state.

SEC vs. Coinbase Case

The staking service that Coinbase offers, as well as some of the tokens it lists, are all considered securities by the SEC, which filed a complaint against Coinbase last month. On the same day, legal action against this cryptocurrency exchange was launched by ten different state securities regulators. Since then, the largest cryptocurrency exchange in the US has taken action to refute the allegations made by this authority.