[블록미디어] Coinbase CEO Brian Armstrong has criticized some state governments’ litigation against digital asset steaking services. Although the US Securities and Exchange Commission (SEC) has clearly stated that the steaking service is not a securities, five states, including California, New Jersey, Maryland, Washington, and Wisconsin, are legally measured against coinbase.
Armstrong said through social media X (old Twitter), “The states make unfounded claims, which allow users to receive enormous steak compensation.” To date, the damage estimation amounted to about $ 90 million.
The Financial Services Bureau under the SEC also said that some steaking services are not securities. As a result, several weeks have ended the lawsuit, such as Illinoi, Kentucky, and South Carolina, but the remaining weeks continue the lawsuit because of ‘consumer protection‘.
Coinbase said, “Our steaking program is operated safely, and it is designed to allow users to participate and receive compensation without technical knowledge.”
On the other hand, Trump Media, the major shareholder of Trump, announced on the 30th that it would establish a Bitcoin strategic asset by raising $ 2.32 billion (about 3.2 trillion won). Fifty institutional investors participated in the financing, and Trump Media is one of the largest Bitcoin companies in the US. The asset trust is in charge of Crypto.com and anchorage digital.
The industry pointed out that “policy uncertainty of steaking services can have a negative impact on the introduction of major assets,” and pointed out that it is urgent to secure regulatory consolidation between the federal and state governments.
* This article was published on June 01, 2025, 07:50. View original text ⇒
Coinbase Faces State Scrutiny Despite SEC Clarity: Expert Insights on Crypto Staking Regulations
Time.news Editor: Welcome, everyone. Today,we’re diving deep into the evolving landscape of cryptocurrency regulations,specifically focusing on the challenges Coinbase is currently facing with state governments regarding it’s crypto staking services. Joining us is Dr. Evelyn Reed,a leading expert in blockchain law and digital asset regulation. Dr. Reed, thanks for being here.
Dr. Evelyn Reed: It’s my pleasure.
Time.news Editor: Dr. Reed, recent news indicates that despite the SEC appearing to deem staking services as not securities, Coinbase is battling legal challenges from multiple states.Can you elaborate on the core issue here?
Dr. Evelyn reed: Certainly. While the SEC might not view Coinbase’s staking service as securities per se, some state governments are taking a different stance, primarily focusing on ‘consumer protection’. They argue that thes staking services, offering rewards, might fall under state securities or investment regulations, even if they don’t meet the federal definition.As we saw in 2023,state attorneys general have brought actions against Coinbase alleging violations of securities laws tied to staking rewards programs [[1]]. Think of it as a difference in interpretation and enforcement priorities.
Time.news Editor: The article mentions specific states like California, New Jersey, Maryland, Washington, and Wisconsin are still pursuing legal action. Why are these states maintaining this position?
Dr. Evelyn Reed: States have broad powers to regulate activities within their borders to protect consumers. They might be concerned about the risks associated with staking, the potential for losses, and the lack of clear disclosures. They may feel a duty to ensure that residents are adequately informed and protected, irrespective of the SEC’s stance. It also underscores the patchwork nature of crypto regulation in the U.S., where federal guidance doesn’t automatically preempt state laws. south Carolina’s action in the past, for example, highlights this state-level scrutiny [[1]].
Time.news Editor: Coinbase CEO Brian Armstrong has publicly criticized these state actions, claiming they are unfounded. What’s at stake for Coinbase here, and more broadly, for the crypto industry?
Dr. Evelyn Reed: For coinbase, the immediate concern is the cost and distraction of defending against these lawsuits, possibly to the tune of $90 million in estimated damages, as the article suggests. Longer term, it’s about the viability of their staking programme and their ability to offer these services to users in certain states.
More broadly, this situation creates regulatory uncertainty for the entire crypto industry. If states have conflicting interpretations of federal guidance and aggressively pursue enforcement actions, it can stifle innovation and investment in the digital asset space. A lack of clear, consistent rules makes it arduous for businesses to operate and for consumers to understand their rights and risks.
Time.news Editor: The article also touches upon Trump Media’s recent investment in Bitcoin.How does this news tie into the broader conversation about crypto regulation and adoption?
Dr. Evelyn Reed: Trump Media’s $2.32 billion strategic asset allocation in Bitcoin,managed by Crypto.com and Anchorage Digital, signals growing institutional interest and acceptance of cryptocurrency as a legitimate asset class. Though, the industry concern that “policy uncertainty of steaking services can have a negative impact on the introduction of major assets,” is valid. Businesses, especially larger ones, need regulatory clarity before committing notable capital to crypto-related ventures. The staking debate directly influences this clarity for various other facets of the crypto world.
Time.news Editor: What practical advice would you give to our readers who are currently using or considering using crypto staking services?
Dr. Evelyn Reed: First, do your homework. Understand the specific staking program you’re considering, including the risks involved and the potential rewards. Read the fine print. Secondly, be aware of the regulatory landscape in your state. Are there any specific laws or regulations that might affect your participation in staking? If you reside in California, New Jersey, Maryland, washington, or Wisconsin you may want to exercise additional caution. Thirdly, consider diversifying your crypto holdings. Don’t put all your eggs in one basket, especially in a volatile and evolving market like cryptocurrency. stay informed. Keep up-to-date on the latest regulatory developments and industry news. There are reliable sources that can provide you with valuable data.
Time.news Editor: Dr. Reed, thank you for providing such valuable insights into this complex issue. Your expertise is greatly appreciated.
Dr. Evelyn Reed: You’re welcome. It’s crucial for consumers and businesses alike to stay informed as the world navigates this intricate, ever-changing landscape.
time.news Editor: That was Dr. Evelyn Reed, offering her expert perspective on the ongoing regulatory challenges facing Coinbase and the broader implications for the crypto staking industry. Stay tuned to Time.news for more updates.
