Coinbase Launches Staking in New York After State Approval – ETH and SOL Yields Now Available

Core Insights - Coinbase has launched staking services for New York residents, enabling them to earn yields on Ethereum and Solana holdings for the first time, following state regulatory approval [1] - The decision marks a significant policy shift that may influence other states, as New York joins a shrinking list of states where staking remains restricted [2] Regulatory Landscape - Coinbase estimates that residents in California, New Jersey, Maryland, and Wisconsin have collectively missed over $130 million in staking rewards due to ongoing state-level bans [2] - The company has maintained that staking as a service does not constitute a security, supported by recent SEC staff guidance and dismissals of multiple state cases [3] - Chief legal officer Paul Grewal has called for federal legislation to address the inconsistent state-by-state enforcement actions [4] Legal Developments - Ten state regulatory bodies have engaged in enforcement actions, with only four requiring Coinbase to suspend new staking deposits during legal proceedings [5] - New Jersey and Washington State's cases remain active, indicating unresolved legal issues, while South Carolina has introduced the Strategic Digital Assets Reserve Act, proposing to allocate up to 10% of certain funds into cryptocurrencies [6]