December 8, 2023

The cryptocurrency giant suspended staking operations in California, New Jersey, South Carolina, and Wisconsin, and continued discussions with their respective regulators.

The U.S.-based cryptocurrency exchange is back in the news following a bitter dispute with the U.S. Securities and Exchange Commission (SEC).exist a blog post Yesterday, July 14, following preliminary orders from local state regulators, the exchange announced a temporary suspension of staking operations in these four states.

Laws in those states allow the agencies to issue preliminary orders even before legal proceedings begin.

Additional Aspects of Coinbase Legal Proceedings

In addition to the aforementioned states, the exchange is also facing legal action from regulators in Maryland, Vermont, Kentucky, Illinois, Alabama, and Washington state. However, unlike the previous four states, Coinbase’s staking services are unaffected, and customers “are still eligible to stake cryptocurrencies as before.”

This sequence of events culminated in the SEC following file a lawsuit The exchange was targeted on June 6 last year.In the lawsuit, the agency claims that the exchange acted as a unregistered broker, the exchange strongly denies this.Almost immediately, the respective regulators of the aforementioned countries launched their own legal proceedings against the company Coinbase.

Take a stand

However, Coinbase still poised Litigation and subsequent legal action by local state regulators. It reiterated its stance that staking services are not securities and called on the SEC to develop sound cryptocurrency policy rather than the current path of mandated regulation.

“It may be easier to simply cut off staking services in the ten states that have sued us, but we believe that is wrong from a legal standpoint, wrong for our customers, and wrong for the crypto economy. The future is also wrong,” the exchange said.

Following these statements, the exchange reiterated its call for the cryptocurrency community to come together to create pro-crypto policies and make the U.S. a cryptocurrency hub.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.