Coinbase Halts Staking Services in Maryland Following Securities Commissioner’s Order
In an unfolding development, the US cryptocurrency exchange Coinbase announced the suspension of its staking services in Maryland today via an e-mail to its customers. The decision follows a preliminary cease and desist order issued by the Maryland Securities Commissioner on June 6, 2023. The order targets specific aspects of Coinbase’s staking services and marks the beginning of a legal case against the company.
According to the e-mail
, Coinbase has been in dialogue with the Maryland Securities Division since the order was issued. In compliance with the legal directive, they are modifying their staking services for Maryland residents. Staking, a process integral to cryptocurrency operations, allows holders to earn rewards by participating in network security and operations. I line with the recent developments, Maryland-based users of Coinbase will face immediate changes, however.
I just got an email from Coinbase, saying that the state of Maryland is putting a halt to staking rewards. Wtf?! @maryland what are you doing going against the current? @coinbase #staking #maryland #crypto #freecrypto pic.twitter.com/Hm81SWFOWD
— MaynBayherPigg (@dajuiceboxyears) November 2, 2023
From Thursday, Maryland users will be unable to stake additional cryptocurrencies, the e-mail states. In the upcoming weeks, Coinbase will also unstake any crypto balance staked after June 5, including accrued rewards. This action is a direct response to the restrictions imposed by the Maryland authorities. Coinbase assured its users that all unstaked funds will remain in their primary balances.
Coinbase has expressed disagreement with the Maryland Securities Division’s interpretation of its retail staking services under state securities laws. The
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