Coinbase, the biggest cryptocurrency exchange in the United States, has paused staking services for customers in California, New Jersey, South Carolina, and Wisconsin. It would appear that there are some regulatory concerns that need to be addressed by regulators in these states as Coinbase battles with its Securities and Exchange Commission (SEC).
Staking In The US
Staking crypto has become the norm, especially as many blockchains are now relying on the proof-of-stake (PoS) consensus mechanism. The US is home to the biggest crypto stakers in the world, and Coinbase is at the forefront of staking services in the country.
Their staking program allows users to earn rewards for locking in certain crypto assets. And according to the crypto exchange, 46% of those that stake the most Ethereum are in the US.
One problem that the exchange has encountered though is the laws around cryptocurrency staking are complex and still being interpreted, particularly as the SEC recently took the exchange
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