Coinbase has won approval from New York regulators to offer staking services in the state, marking a breakthrough for one of the largest U.S. crypto exchanges after a year of legal battles over whether such programs constitute securities offerings.
In a blog post on Wednesday, Coinbase said New Yorkers can now earn rewards by staking Ether, Solana, and other digital assets directly through the platform. The company credited Governor Kathy Hochul for “embracing progress and providing clarity” that allowed the service to move forward, adding that it plans to extend staking access across the country.
“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. “But our work is not done. We estimate that residents in California, New Jersey, Maryland, and Wisconsin have collectively missed out on more than $130 million in staking rewards due to state-wide bans.”
The decision marks a shift in tone from New York’s notoriously tough stance on digital asset firms, which must comply with the state’s BitLicense regime to operate legally. Coinbase had long faced restrictions that prevented local users from participating in staking—a process that allows crypto holders to help secure proof‑of‑stake blockchains and receive rewards in return.
Regulatory Tide Turning
Coinbase’s New York approval comes after a string of state‑level enforcement cases against the company fizzled out. Roughly ten states filed lawsuits in 2023, alleging that Coinbase’s staking program violated securities laws. This year, regulators in South Carolina, Alabama, Kentucky, Vermont, and Illinois dropped their cases, clearing a path for the exchange to restart operations in those regions.
The regulatory thaw contrasts with continuing tensions at the federal level. In February, the U.S. Securities and Exchange Commission dismissed its own lawsuit against Coinbase—just weeks after a change in the presidential administration. But not all state regulators have eased off. Oregon’s attorney general, Dan Rayfield, filed a fresh complaint in April accusing the exchange of offering unregistered securities to local residents. “State authorities must fill the enforcement vacuum being left by federal regulators,” Rayfield said at the time.
Coinbase has urged the U.S. Justice Department to intervene and prevent similar patchwork actions by individual states, arguing that inconsistent rules undermine innovation.
Beyond staking, Coinbase is pursuing a wider campaign to blur the boundaries between traditional and digital finance. The company confirmed Friday that it has applied for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency—a license typically used by firms managing digital assets on behalf of clients. Coinbase said the charter would serve as “a bridge between crypto and traditional finance,” while insisting it had “no intention of becoming a bank.”
Chief executive Brian Armstrong has repeatedly described Coinbase’s long‑term goal as building a crypto “super app,” combining investing, payments, and on‑chain identity tools. In September, he said the company’s future could make conventional banks “obsolete” for users seeking faster and cheaper access to financial services.
For now, the green light in New York marks a concrete win for Coinbase, which has spent years challenging regulators’ views on staking. It could also signal a gradual softening of the state‑level stance toward digital assets after years of hesitation.
With the approval, New York’s millions of crypto investors can finally join the rest of the U.S. in earning staking yields—an opportunity Coinbase says they’ve been denied for too long.