Like Binance, crypto firm Coinbase faces significant regulatory challenges in the United States. As a result, it makes strategic choices to best manage the regulatory snags it has with regulators.
A halt to the staking offer in connection with Coinbase’s regulatory concerns
Coinbase will no longer offer staking services for its users in California, South Carolina, New Jersey, and Wisconsin. The company announced its decision on Friday July 14.
The decision implies that Coinbase would no longer accept new customers for these services in these states. A policy that complies with certain orders requiring the company to stop processing staking requests from users in those states.
Coinbase’s operational choice fits into the current regulatory circumstances. According to details provided by the platform, its decision is motivated by the regulatory dispute it has with regulators.
One of them, the SEC, notably launched legal proceedings against Coinbase a few weeks ago. She accuses the company of violating US securities laws.
This, through its staking offer which allows users to earn interest on their assets. Allegations, of course, firmly denied by Coinbase. According to her, her staking products, and even loans, are not securities. Rather, they would be essential mechanisms to guarantee the security and development of cryptos.
The company has not refrained from criticizing the hostility and lack of clarity towards the crypto industry. Despite this, Coinbase has expressed its commitment to working with policymakers across states. This is to ensure the availability of its staking program for all users.
In addition, the company clarified that the cessation of its staking services only concerns new users from the jurisdictions concerned. Thus, those who already benefit from this offer are not worried. Likewise, Coinbase staking services remain available to users in states where regulation is not an impediment.
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