Coinbase’s Push for Crypto Staking Rights
In a determined push to reclaim crypto staking rights for its users across the United States, Coinbase is confronting significant obstacles while advocating for millions in staking rewards that remain out of reach for residents in select states.
Staggering Losses in Staking Rewards
On Friday, the leading cryptocurrency exchange, publicly traded under Nasdaq as COIN, took to X, the social media platform, to highlight the staggering loss of potential staking rewards suffered by its clients in certain regions, specifically California, New Jersey, Maryland, and Wisconsin.
These states alone have collectively missed out on over $90 million in staking rewards since June 2023, according to Coinbase’s estimates. While regulatory developments have seen the U.S. Securities and Exchange Commission (SEC) and five other states discontinue their lawsuits against Coinbase, the exchange reminds crypto enthusiasts that their staking activities continue to be at risk.
Financial Implications for Affected States
A video accompanying the statement outlined the ongoing restrictions, making it clear that, despite the SEC’s and more than 40 other states’ recent easing of regulations to allow staking via Coinbase, the aforementioned four states still stand in the way.
Delving into the financial implications, the breakdown revealed that:
- Wisconsin residents have potentially lost about $3 million.
- Maryland users have forfeited approximately $5 million.
- New Jersey users have seen losses around $12 million.
- Notably, California‘s users are hardest hit, with losses nearing $71 million.
