Coinbase gains New York approval to offer crypto staking

Coinbase has announced that residents of New York can now stake cryptocurrencies such as Ethereum (ETH) and Solana (SOL) on its platform, following regulatory approval from state authorities. This decision provides access to staking services for millions of New Yorkers and represents a significant regulatory shift in one of the country's most tightly controlled crypto markets. Coinbase hailed the approval as a milestone for financial inclusion and acknowledged Governor Kathy Hochul's administration for the clarity on staking programs. Historically, New York’s Department of Financial Services (NYDFS) has been stringent in its regulations regarding digital assets, limiting yield-based products. This approval indicates a potential softening of the state's stance on services previously considered securities. The announcement follows the SEC's earlier enforcement action against Kraken's staking program which led to a nationwide withdrawal of their services. Coinbase argues that its staking program is distinct because it facilitates network participation rather than pooling customer assets for profit. The approval may influence other states that still restrict staking, as Coinbase estimates significant potential rewards have been lost by residents in states like California and New Jersey due to these limitations.

Source 🔗