Coinbase (NASDAQ:COIN), a leading US cryptocurrency exchange, has suspended its retail staking services in Maryland, effective from today, Thursday, following a cease and desist order issued by the Maryland Securities Commissioner. The decision impacts staking activities where users earn rewards through network security participation. As reported by @dajuiceboxyears and TheCryptoTengu.eth on Thursday, Maryland users will not be able to stake additional cryptocurrencies, and Coinbase will unstake any post-June 5 crypto balance, including accrued rewards.
In addition to these measures, the company is currently engaged in legal proceedings with the Maryland Securities Division over the interpretation of state securities laws as they apply to its retail staking services. Despite disagreeing with Maryland’s stance, Coinbase is considering adapting its services. The company hinted at a potential resumption of these services as the order is not a final adjudication.
These funds and related rewards will be moved to users' main accounts. Users still have the option to earn rewards on their remaining staked balance without restaking and can opt for voluntary unstaking at any time through Coinbase's Earn tab, subject to standard unstaking periods.
Notably, this case could shape the regulatory approach to cryptocurrency regulation in the US and potentially set a precedent for staking services regulation in other states. The U.S. Securities and Exchange Commission (SEC) has also initiated a broader case against Coinbase.
This move follows similar proceedings launched against Coinbase on June 6 by securities agencies in ten states, including Alabama, California, Illinois, Kentucky, New Jersey, South Carolina, Vermont, Washington, and Wisconsin. Unlike previous instances where Coinbase restricted staking in four states, Maryland's measures also impact existing staked funds.
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