Coinbase Maryland Staking Services Are Now Discontinued
- Coinbase Maryland staking services were suspended due to a cease-and-desist order from the state’s Securities Commissioner.
- Users are no longer able to stake new cryptocurrencies or existing staked funds after June 5.
- Coinbase expresses disagreement with Maryland’s interpretation of its services.
In response to a preliminary cease-and-desist order issued by the Maryland Securities Commissioner on June 6, 2023, cryptocurrency exchange Coinbase has suspended its staking services for Maryland residents. This move marks the beginning of a legal battle with the state, and it follows previous restrictions imposed by Coinbase in four other U.S. states.
Coinbase Maryland Staking Services Suspended Amid Regulatory Clash
As a result of the regulatory action, Maryland-based users of Coinbase will no longer be able to stake additional cryptocurrencies, and any funds staked after June 5, including accrued rewards, will be unstaked and deposited into users’ primary balances. While users will still receive rewards on existing staked balances, these rewards will not be staked again. Users also have the option to voluntarily request to cancel their staking rewards at any time.
Coinbase expressed disagreement with Maryland’s interpretation of Coinbase Maryland staking services under state securities laws, emphasizing that the cease and desist order is not a final ruling but a preliminary step in an ongoing legal case. The company is committed to complying with the order’s terms while defending its staking services in Maryland.
Dispute Arises as Coinbase Reacts to Maryland Cease
The impact of this regulatory action extends to changes in Coinbase Maryland staking services for Maryland customers, who may continue to earn rewards on existing staked balances, albeit without restaking. The company is ensuring compliance with the directive while the legal case progresses.
Coinbase had previously restricted staking in California, New Jersey, South Carolina, and Wisconsin, but the Maryland situation now affects existing staked funds as well. These developments highlight the ongoing regulatory challenges faced by cryptocurrency exchanges as they navigate the evolving legal landscape.
Customers in Maryland can refer to Coinbase’s Earn tab for details on unstaking their assets, subject to standard unstaking periods. The outcome of this legal dispute may impact the future of Coinbase Maryland staking services in the state.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.