Public crypto exchange Coinbase suspended crypto staking services in four US states amid a legal battle with the US SEC.
Coinbase is a US-based Nasdaq listed crypto exchange. In the first week of June of this year, this exchange was sued by the United States Securities Exchange Commission (SEC) over providing alleged unregistered securities offerings. In response to the SEC’s suit, the Coinbase exchange promised that it will not bring any changes in its existing services, as the exchange provides services under full rules & regulations, and laws & facts will help the exchange to win against the SEC’s allegations.
On 14 July 2023, Coinbase exchange published a blog post & confirmed that the exchange suspended crypto staking services for customers belonging to California, New Jersey, South Carolina, and Wisconsin.
Exchange confirmed that all the SEC’s allegations are wrong but still, the exchange decided to terminate retail crypto staking services because the exchange always follows the rules to comply with the regulatory system.
We strongly disagree with any allegation that our staking services are securities,” said the Nasdaq listed exchange stated. “But we will fully comply with the preliminary state orders where required, even though that comes before we’ve had an opportunity to defend ourselves.”
The blog post read that crypto staking will remain available in the other states, other than those mentioned. In these restricted US states, Coinbase will not be able to provide staking services until the end of the legal battle in the corresponding jurisdictions.
4/ Restricting staking in specific states will provide no benefits to their residents. It will simply limit those residents’ ability to participate and benefit from the cryptoeconomy. But we believe in compliance and will follow the states’ orders as proceedings continue.
— Coinbase
(@coinbase) July 14, 2023
(@coinbase) The current trade price of Coinbase (COIN) stock is $105.3 & this trade price is 33.17% high over the last 5 days of trade price.
The rally in the Coinbase stock is showing that stock investors are still highly confident in the future of Coinbase, despite the exchange facing huge legal hurdles in the US.
Just a couple of days ago, San Francisco-based fintech company Ripple (XRP) secured regulatory approval against the American securities regulatory body. And now the crypto community is expecting that Coinbase will secure a huge win against SEC’s charges.
Read also: Top Indian minister Amit Shah compares Metaverse & Crypto with dynamite
Coinbase suspends crypto staking in some US states
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