Crypto exchange Coinbase has informed customers in California, New Jersey, South Carolina, and Wisconsin that its staking service will be suspended due to local regulatory requirements; current funds will be unaffected by this decision.
They plan to update users on the changes they’ll be seeing in the coming weeks. Customers in other states will not be seeing any changes to the service.
On June 6, the SEC filed a civil lawsuit against Coinbase for an unregistered offer of securities in the form of a number of tokens, as well as targeting Coinbase’s Earn staking program.
Ten state regulators, including Maryland, Vermont, Kentucky, Illinois, Alabama and Washington, also made similar claims of the latter.
The exchange disagree with these claims, but said they will comply with executive orders even prior to having a chance to defend themselves.
Meanwhile, there has been a drop in Coinbase’s share of the Ethereum staking market due to the regulatory pressure.
