Coinbase Suspends Staking Services In Some Locations Eager SEC Lawsuits
- Coinbase has suspended its staking service in California, New Jersey, South Carolina, and Wisconsin.
- The action comes after these states said they would request changes to those services while proceedings against those betting services proceed.
- On June 6, 10 US states began proceedings regarding Coinbase’s retail staking service.
Coinbase has officially written that, on June 6, 10 US states have initiated lawsuits related to the platform’s staking service.
The vast majority of the exchange’s customers are unaffected. Still, the exchange has requested restrictions on its retail mortgage services pending the completion of proceedings in California, New Jersey, and South America. Carolina and Wisconsin.
“Four of the states – CA, NJ, SC, and WI – have required restrictions to our retail staking services before their state proceedings are complete, even though our staking services have been available safely and transparently for years.”
Restricting staking will not benefit local residents. It will only limit these residents from participating in and benefiting from the crypto economy. But Coinbase will follow the orders of the states during the litigation.
The exchange also asserts that almost all significant blockchains today rely on staking because it is open, secure, and environmentally friendly. Americans in every state deserve the same economic and technological opportunities.
The SEC filed a lawsuit against Coinbase last month, classifying its staking service, as well as some of the tokens it lists as securities. That same day, securities authorities in ten states began proceedings on this crypto exchange. Since then, the largest cryptocurrency exchange in the US has always taken action to deny all accusations of this regulator.
Ripple’s recent partial victory when the US Court ruled that trading its XRP token on cryptocurrency exchanges did not violate securities laws has brought good news to the crypto industry and Coinbase.
The event is considered to weaken the SEC’s earlier charges against two exchanges, Coinbase and Binance. The community also expects a new legal framework.
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