Coinbase, the leading US-based cryptocurrency exchange, today announced that it has rolled out cryptocurrency staking services for New York residents after receiving regulatory approval. Notably, New York-based Coinbase users can now stake Ethereum (ETH) and Solana (SOL) on the exchange.
New York Coinbase users can now stake on Ethereum and Solana
After years of regulatory back-and-forth, Coinbase finally emerged victorious, as the exchange does today announcement that its New York-based users can now stake on major cryptocurrencies including ETH and SOL.
For the uninitiated, staking is one of the most used features of cryptocurrencies, as it allows holders to use their digital assets not only to secure the underlying blockchain network, but also to receive rewards in return.
In the announcement, Coinbase thanked New York Governor Kathy Hochul for “embracing progress and providing clarity” to ensure New York residents have the opportunity to stake their digital assets.
It is worth noting that by 2023, several US states had filed lawsuits against Coinbase for offering staking services, alleging that it violated securities laws. Subsequently, states such as South Carolina, Alabama, Kentucky and Illinois dropped their cases, following Donald Trump’s victory in the 2024 US presidential election.
Coinbase said that while its New York-based users can now take advantage of its staking services, the battle is not over yet. The crypto trading platform added:
We estimate that residents of California, New Jersey, Maryland and Wisconsin have collectively missed out on more than $130 million in gambling rewards due to statewide bans. This is real money for families and communities who should not be left behind.
It is worth highlighting that financial regulators in the United States are finally gearing up for cryptocurrency staking services, as the Trump administration strives to create a conducive cryptocurrency regulatory framework in the country to end the corporate exodus seen under the Joe Biden regime.
Regulators are gradually adopting crypto staking services
Recently, asset manager Grayscale Investments announcement that its Ethereum exchange-traded fund (ETF) had become the first ETF in the country to allow staking. The company is now awaiting approval of staking services for its Solana-based investment product.
Likewise, other Solana-based ETFs are expected to offer staking services to their short-term investors. Specifically, Solana ETFs from Franklin, CoinShares, Bitwise, Fidelity, Canary and VanEck are expected to receive regulatory approval for staking in just two weeks.
That said, the path to full regulatory adoption of crypto staking services should not be completely devoid of ups and downs. Recently, the United States Securities and Exchange Commission (SEC) delayed approval of staking proposals for Ethereum ETFs. At press time, ETH is trading at $4,535, up 1% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
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