EddieJayonCrypto
8 Oct 25
Coinbase launches crypto staking in New York, hitting 46 states, as SEC drops lawsuit and CEOs clash over securities classification. The move signals growing institutional adoption amid regulatory uncertainty.
**Coinbase Expands Crypto Staking to New York, Marks 46-State Milestone** Coinbase, one of the largest U.S. cryptocurrency exchanges, has announced the launch of crypto staking services in New York, expanding its support to 46 states nationwide. The move marks a significant milestone for the company and the broader crypto industry, as it navigates regulatory challenges and continues to grow its offerings. In a post on X (formerly Twitter), Coinbase CEO Brian Armstrong celebrated the expansion, emphasizing that staking services should not be classified as securities. "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," he wrote. Armstrong’s comments highlight ongoing tensions between crypto platforms and regulators, particularly in states where legal actions against staking programs remain unresolved. The announcement comes after the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase in February 2024, a landmark victory for the exchange and the crypto sector. The SEC had previously accused Coinbase of violating securities laws by facilitating trading in 13 crypto tokens without proper registration and by failing to register its staking program. The dismissal of the case is seen as a step toward clearer regulatory frameworks for crypto services. Coinbase’s expansion into New York follows similar moves by other industry players. This week, digital asset manager Grayscale unveiled staking support for its Ethereum and Solana Exchange-Traded Products (ETPs), making them the first U.S.-listed spot crypto ETPs to enable staking. Grayscale also activated staking for its Solana Trust (GSOL), pending regulatory approval for its uplisting as an ETP. These developments signal a growing trend of institutional adoption of staking services, which allow users to earn rewards by validating transactions on blockchain networks. The expansion of staking services in New York and across 45 other states underscores the increasing integration of crypto into traditional financial systems. As Coinbase and Grayscale continue to innovate, the industry awaits further clarity on regulatory standards, which could shape the future of crypto investment and infrastructure in the U.S. With the SEC’s recent dismissal of its case against Coinbase and the rise of staking-enabled ETPs, the crypto space appears to be entering a new era of growth and legitimacy. For now, New Yorkers and investors nationwide can enjoy the benefits of staking, as the industry works to balance innovation with compliance.