Coinbase has a lesser mission to fully restore crypto-staking rights across America, combat major barriers and protect potential staking rewards.
Coinbase is fighting to fully restore staking rights across the US
Crypto Exchange Coinbase (NASDAQ:COIN) reaffirmed its commitment to defending Crypto staking on social media platform X on Friday, bringing attention to the substantial staking rewards lost by customers in certain states. The company stressed that even if regulatory momentum changes, there remains a major barrier for some crypto holders. Coinbase highlighted:
Your crypto staking is still at risk. The SEC and five states have dismissed their staking lawsuit, but the California, California crypto owner has missed an estimated $900 million in staking and counting compensation and counting since June 2023.
The video posted alongside the message explains that while the Securities and Exchange Commission (SEC) and more than 40 states are now able to encrypt Coinbase users, four states – California, New Jersey, Maryland and Wisconsin – continue to block access.
The company detailed its financial impact. Wisconsin users have missed out on a reward of around $3 million since June 2023. Maryland users have forgotten about $5 million. New Jersey users lost about $12 million. And California users were unable to collect nearly $71 million. Coinbase also pointed out that no users have lost the assets they have wagered through the platform.
Five US states (Vermont, South Carolina, Kentucky, Illinois and Alabama) have officially withdrawn dangerous related lawsuits against Coinbase. The Alabama Securities Commission, the latest to dismiss the case on April 23, citing the joint effort between the SEC and the cryptocurrency industry to develop a clearer regulatory framework.
This is a major change that encouraged several states to reassess their legal stance following the SEC’s previous move to dismiss federal lawsuits against Coinbase in February. While progress is being made, Coinbase has shown that it will continue to push to fully recover staking rights, underscoring its view that staking is essential to maintain the security of the blockchain and strengthening the power of crypto users.
