Coinbase: Ongoing State Lawsuits Block $90M in Staking Rewards for Users

In Brief:

Coinbase says lawsuits in California, New Jersey, Maryland, and Wisconsin are freezing staking rewards.

Users have lost over $90 million in potential earnings since June 2023.

According to Coinbase Legal Vice President Paul VanGreck, ongoing lawsuits in four U.S. states have prevented users from accessing more than $90 million in staking rewards. While states like Illinois, Kentucky, South Carolina, Vermont, and Alabama have withdrawn their legal actions against Coinbase’s staking services, California, New Jersey, Maryland, and Wisconsin have not.

VanGreck emphasized that the lawsuits, which began in June 2023, have directly impacted users in these states by blocking their ability to earn rewards from staking programs. Coinbase is now calling for an immediate halt to what it describes as unnecessary suppression of its staking business.

Staking services, which allow users to earn passive income by participating in network validation, have become a major growth area for exchanges like Coinbase. The firm argues that halting access to staking hurts ordinary investors more than it protects them.

The company’s call for action highlights the broader regulatory tensions around crypto staking in the U.S., where debates over classification and consumer protection continue to evolve.

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