Berenberg analysts have warned investors of the regulatory risks for Coinbase posed by the termination of staking services in four US states.
Coinbase notified its customers in California, New Jersey, South Carolina and Wisconsin that the service was suspended due to local regulatory requirements.
On June 6, the SEC filed a civil lawsuit against Coinbase, which also targeted the Coinbase Earn staking program. In addition, ten other state regulators have made similar claims.
Berenberg experts saw this as a test of Coinbase Earn involving the SEC ruling regarding Ripple, and noted its potential vulnerability in terms of securities definition.
Despite the lawsuit, Coinbase has declined to modify its business model.
