{"id":20001,"date":"2023-07-14T22:23:38","date_gmt":"2023-07-14T22:23:38","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/coinbase-pauses-staking-services-in-four-us-states-following-regulators-orders\/"},"modified":"2023-07-14T22:23:40","modified_gmt":"2023-07-14T22:23:40","slug":"coinbase-pauses-staking-services-in-four-us-states-following-regulators-orders","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/coinbase-pauses-staking-services-in-four-us-states-following-regulators-orders\/","title":{"rendered":"Coinbase pauses staking services in four US states following regulators’ orders"},"content":{"rendered":"

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United States-based cryptocurrency exchange Coinbase has announced it will be temporarily stopping customers from staking additional assets in four states amid legal proceedings from local regulators.<\/p>\n

In a July 14 blog post, Coinbase said users in California, New Jersey, South Carolina, and Wisconsin would be restricted from using certain staking services until further notice. Following the U.S. Securities and Exchange Commission filing a lawsuit against the crypto exchange in June for offering unregistered securities, regulatory bodies in 10 U.S. states started their own legal proceedings, prompting the suspension of certain services.<\/p>\n

\u201cWe strongly disagree with any allegation that our staking services are securities,\u201d said Coinbase. \u201cBut we will fully comply with the preliminary state orders where required, even though that comes before we\u2019ve had an opportunity to defend ourselves.\u201d<\/p>\n

According to Coinbase, only the regulators\u2019 actions in California, New Jersey, South Carolina, and Wisconsin require the pause in staking additional assets. Users based in Alabama, Illinois, Kentucky, Maryland, Vermont, and Washington are \u201celigible to stake crypto just as they were before\u201d. <\/p>\n

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1\/ As you might have heard, on June 6, 10 US states initiated proceedings related to Coinbase\u2019s retail staking services. Let\u2019s dig into what this means for our customers. pic.twitter.com\/pQidr0Ijc9<\/a><\/p>\n

\u2014 Coinbase \ufe0f (@coinbase) July 14, 2023<\/a><\/p><\/blockquote>\n

Related: <\/em><\/strong>US crypto exchanges give XRP listings a second chance after court ruling<\/em><\/strong><\/p>\n

The announcement followed the first pre-motion hearing in the SEC\u2019s case against Coinbase. The commission filed the lawsuit on June 6 alleging the crypto exchange has operated as an unregistered security broker since 2019. Coinbase has largely denied all the allegations. <\/p>\n

State and federal regulators have gone after other crypto firms for staking, claiming the services violated securities laws. In February, Kraken reached a $30-million settlement with the SEC requiring it stop offering staking services or programs to U.S. clients.<\/p>\n

Magazine: <\/em><\/strong>Can you trust crypto exchanges after the collapse of FTX?<\/em><\/strong><\/p>\n