Coinbase Launches New York Staking After State Approval – ETH and SOL Yields Now Available

Coinbase has enabled staking services for New York residents, allowing users to earn yields on Ethereum and Solana holdings for the first time.

The rollout follows approval from state regulators under Gov. Kathy Hochul’s administration, ending a restriction that separated New Yorkers from gambling opportunities available to most other Americans.

New York users can now bet ETH, GROUNDand other assets supported directly through the platform, with rewards earned in the network’s native tokens.

New York joins shrinking list of states where staking remains restricted

Coinbase estimates that residents of California, New Jersey, Maryland, and Wisconsin collectively missed out on more than $130 million in staking rewards due to state-level bans still in effect.

The exchange presented New York’s decision as a policy change that could influence other states, although several jurisdictions continue to maintain restrictions on staking-as-a-service products.

Throughout its legal battles, Coinbase has maintained that staking as a service does not constitute security, a position the company says is supported by recent SEC staff guidance and several state case dismissals.

Vermont, Illinois, Kentucky, Alabama and South Carolina have all dropped their staking-related lawsuits against the exchange, contributing to what Coinbase describes as an emerging national consensus.

Legal Director Paul Grewal has repeatedly called for federal legislation to replace what he calls a patchwork of state enforcement actions.

Coinbase initially suspended staking services in California, New Jersey, South Carolina and Wisconsin in July 2023 after the SEC filed a complaint alleging the exchange was offering unregistered securities.

Ten state regulators joined the enforcement wave, although only four jurisdictions required Coinbase to suspend new staking deposits while legal proceedings continued.

Illinois confirmed its intention to drop its lawsuit on April 3, 2025, following Kentucky’s April 1 dismissal filing and South Carolina’s March 27 withdrawal.

However, representatives from the New Jersey Bureau of Securities and the Washington State Securities Administrator confirmed that their cases remain active, indicating that the legal issues have not been fully resolved.

At the same time, South Carolina’s withdrawal was accompanied by the state’s introduction of the Strategic Digital Assets Reserve Act, which proposes to allocate up to 10% of certain funds to cryptocurrencies, including Bitcoin.

Staking approvals came amid improving regulations in US crypto markets

The SEC issued guidance in August 2025 clarifying that certain liquid staking arrangements, including receiving tokens like stETH, do not constitute securities transactions.

Sam Kim, legal director of the Lido Labs Foundation, described the guidelines as “the essential advice that Lido and the industry as a whole need” this would encourage institutional participation by investors previously deterred by legal uncertainty.

Legal experts suggest that the SEC’s stance on staking receipts could influence future considerations regarding wrapped tokens and cross-chain bridges that rely on similar derived representations.

Building on this regulatory momentum, Grayscale launched the first U.S.-listed spot crypto ETFs with staking capabilities on October 6, enabling the functionality of its Ethereum Mini Trust ETF, Ethereum Trust ETF, and Solana Trust.

ETF analyst Eric Balchunas reported record inflows of $5.95 billion into digital asset investment products in the first week of October, with Ethereum attracting $1.48 billion and drawing by Solana $707 million.

Against this backdrop, Coinbase faces increasing competition from traditional financial institutions and emerging crypto platforms as it expands beyond pure exchange services into custody, derivatives, and stablecoin operations.

The company has secured custodian roles for eight of the 11 major US Bitcoin ETFs, generating $43 million in the fourth quarter of 2024 from this sector of activity alone.

Its recent acquisition of crypto derivatives platform Deribit for $2.9 billion particularly diversifies revenue streams beyond trading fees, which remain closely correlated with Bitcoin price volatility.

The New York approval marks another jurisdiction in which Coinbase can now offer staking services; however, residents of California, New Jersey, Maryland and Wisconsin remain excluded from similar yield opportunities pending further regulatory action.

The article Coinbase Launches Staking in New York After State Approval – ETH and SOL Yields Now Available appeared first on Cryptonews.

Source link