Coinbase has announced that it will restrict certain staking services for users in California, New Jersey, South Carolina, and Wisconsin until further notice. These restrictions came as a result of regulatory actions initiated by ten U.S. states following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase in June, in which it alleged unregistered securities were offered. The stock market absolutely does not accept these claims. He is determined to defend his staking services in court. Here are the details…
Coinbase is in a legal fight again
Coinbase’s legal battle began when the SEC sued the company for listing a small number of assets on its platform and offering individual staking services. Following this lawsuit, state securities agencies in ten states, including Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin, argued that Coinbase’s individual staking services should be classified as securities under state law. they started their own legal proceedings.
As a result, Coinbase began discussions with these state agencies. However, some states, including California, New Jersey, South Carolina, and Wisconsin, are requesting changes to Coinbase’s services before the transactions are concluded. As a result, customers in these states will not be able to temporarily deposit additional assets through Coinbase while lawsuits are pending. However, customers’ existing staked cryptos will not be affected.
Existing assets in stake will not be affected
Coinbase emphasizes that staking is not an investment, but a crucial aspect of keeping the global crypto economy running. Staking plays a vital role in securing Blockchain networks and processing transactions, giving millions of users access to a wide variety of financial and non-financial services. Coinbase believes that cutting staking services will not only be legally wrong, but also harmful to customers and the future of the crypto economy.
Customers in the affected states will experience temporary limitations on staking additional assets through Coinbase. However, existing staking assets will not be affected. Coinbase contacted affected customers via email and provided specific information regarding their state’s situation. The company also reassures its clients that it is working diligently to overcome these legal challenges.
Coinbase underlines the important role of staking in the survival and growth of the crypto economy. Staking supports secure and efficient Blockchain transactions, promotes accessibility and encourages eco-friendly practices. The company argues that attempts to ban staking in the United States will hinder economic opportunities, entrepreneurship and technical expertise and ultimately push them overseas.
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