Coinbase, the largest U.S.-based cryptocurrency exchange, has received regulatory approval to offer crypto staking services to residents of New York — a move that marks a major milestone for the company and the broader digital asset industry in one of the country’s most tightly regulated financial jurisdictions.
In an announcement on Wednesday, Coinbase said that New Yorkers can now earn staking rewards on Ethereum (ETH), Solana (SOL), and other supported assets directly through the exchange. Staking allows users to lock their crypto to help secure proof-of-stake networks in exchange for periodic rewards, typically paid in the same token.
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“This is a big win for New Yorkers, and a step toward ensuring every American has equal access to the future of finance,” Coinbase said in its statement. The company also credited Governor Kathy Hochul and state regulators for providing the clarity and forward-looking policies that enabled the launch.
The exchange said it plans to expand staking access across more U.S. states, arguing that several regions have effectively deprived residents of significant earning opportunities. Coinbase estimated that users in California, New Jersey, Maryland, and Wisconsin have collectively missed out on over $130 million in potential staking rewards due to local restrictions.
A Shift in Regulatory Tone
The approval from New York’s Department of Financial Services (NYDFS) comes after a turbulent two years for Coinbase’s staking operations, which faced multiple state-level enforcement actions alleging violations of securities laws.
In 2023, more than 10 states filed complaints claiming that Coinbase’s staking services constituted unregistered securities offerings. However, regulators in South Carolina, Alabama, Kentucky, Vermont, and Illinois have since dismissed their cases, suggesting a potential softening in attitudes toward staking.
Coinbase’s ability to resume staking in New York — one of the strictest regulatory environments in the U.S. — signals a turning point. It suggests that some state regulators may now view staking as a legitimate financial service rather than a high-risk investment product.
Still, not every jurisdiction is on board. Oregon Attorney General Dan Rayfield filed a new lawsuit in April, accusing Coinbase of offering unregistered securities to residents. He justified the move by saying that state agencies “must fill the enforcement vacuum being left by federal regulators.” Coinbase has since asked the U.S. Justice Department to intervene and prevent states from taking inconsistent legal actions.
Building Toward a ‘Crypto Super App’
Coinbase’s regulatory victory in New York comes as part of a larger push to expand its suite of products bridging traditional finance and crypto.
Last week, the company announced that it had applied for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency (OCC). While Coinbase said it has “no intention of becoming a bank,” the move would allow it to offer institutional custody and settlement services under federal oversight.
CEO Brian Armstrong has described the company’s long-term vision as transforming Coinbase into a “crypto super app” — one that combines trading, staking, payments, and digital identity into a unified platform that could one day replace traditional banks.
Coinbase’s progress comes at a time when institutional interest in digital assets continues to rise, and as the company faces growing competition from both decentralized platforms and established financial giants entering the crypto space.