Coinbase: 4 US States Deny Crypto Owners $90M in Staking Rewards

Coinbase is charging ahead in its relentless mission to fully restore crypto staking rights across America, fighting massive barriers and protecting millions in potential staking rewards.

Coinbase Fights on to Fully Restore Staking Rights Across the US

Crypto exchange Coinbase (Nasdaq: COIN) reaffirmed its commitment to defending crypto staking Friday on social media platform X, calling attention to substantial staking rewards lost by customers in certain states. The company stressed that even as regulatory momentum has shifted, significant barriers remain for some crypto holders. Coinbase emphasized:

Your crypto staking is still at stake. While the SEC and 5 states have dismissed their staking lawsuits, crypto owners in CA, NJ, MD, and WI have missed out on an estimated $90M+ in staking rewards and counting since June 2023. But we will not stop fighting.

A video posted alongside the message explained that although the U.S. Securities and Exchange Commission (SEC) and more than 40 states now allow Coinbase users to stake their crypto, four states — California, New Jersey, Maryland, and Wisconsin — continue to prevent access.

The company detailed the financial impact: Wisconsin users have missed approximately $3 million in rewards since June 2023; Maryland users have foregone about $5 million; New Jersey users have lost around $12 million; and California users have been unable to collect close to $71 million. Coinbase also pointed out that no users have lost assets staked through its platform.

Five U.S. states—Vermont, South Carolina, Kentucky, Illinois, and Alabama—have officially withdrawn their staking-related lawsuits against Coinbase. Alabama’s Securities Commission was the latest to dismiss its case on April 23, citing collaborative efforts between the SEC and the cryptocurrency industry to develop clearer regulatory frameworks.

This followed the SEC’s earlier move to dismiss its federal lawsuit against Coinbase in February, a major shift that has encouraged several states to reevaluate their legal stances. While progress has been made, Coinbase indicated it will continue pushing to restore staking rights fully, underscoring its view that staking is vital for maintaining blockchain security and empowering crypto users.