Major cryptocurrency platform Coinbase is publicly calling for California, New Jersey, Maryland, Washington, and Wisconsin to cease legal actions concerning its crypto staking services.
The exchange argues these ongoing lawsuits negatively impact consumers and foster regulatory confusion. Coinbase contends that actions in these five states continue to disadvantage residents, citing estimates that users there have potentially lost over $90 million in collective staking rewards since June 2023 due to active cease-and-desist orders.
These orders originated when the SEC and ten states initiated legal proceedings against Coinbase, classifying its staking services as securities. While several states withdrew, some issued directives specifically preventing Coinbase from offering staking for new assets to its users in those jurisdictions.
Coinbase highlighted that despite these restrictions, other cryptocurrency exchanges continue operating similar staking programs, though availability differs by state. This situation, the company suggests, underscores the inconsistency of the remaining legal challenges.
The exchange asserts that the holdout states’ continued litigation is increasingly difficult to justify and ultimately confuses consumers, potentially exposing them to greater risks instead of offering protection.
Separately, Oregon’s Attorney General pursued legal action against Coinbase in late April, alleging inadequate consumer protection regarding unregistered digital assets. Coinbase’s Chief Legal Officer, Paul Grewal, characterized the Oregon suit as derivative, echoing claims previously dropped by federal regulators.