The largest cryptocurrency exchange in the USA, Coinbase, stopped staking operations as a result of pressure from regulators in 4 states in the USA.
In a blog post shared by Coinbase on Friday, July 14 California, new Jersey, South Carolina And in Wisconsin It was stated that staking services offered to users were temporarily stopped. Coinbase announced that it took this decision at the request of the regulators in the states in question.
For now, no details have been given about when and under what conditions the staking services will be active again. 6 July in total on 10 different US states Although it launched an investigation against Coinbase’s staking services, it eventually only 4 of them decided to ban. States where Coinbase continues to provide staking services include Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington.
The rationale of the regulatory authorities in the states for this request is staking transactions are covered by securities was in the direction. Details of the statement made by Coinbase included the following statements:
We strongly disagree with claims that our staking services are securities. But at this point we will fully comply with state orders, even if it comes before we have an opportunity to defend ourselves. We stand by Staking. Almost all major blockchains today rely on staking as it is open, secure and environmentally friendly.
Coinbase’s USA staking transactions in other states continues without any glitches and restrictions.
Paul Grewal, Coinbase’s Chief Legal Officer, said in a statement last February. staking services cannot be considered securities. and emphasized that wrong decisions to be taken by the regulators could result in disaster.