Coinbase Pushes Back as Four U.S. States Block $90M in Crypto Staking Rewards

Despite regulatory progress across the U.S., crypto exchange Coinbase continues to face opposition in several states over its staking services. While the Securities and Exchange Commission (SEC) and more than 40 states have dropped legal challenges and allowed staking to resume, four states—California, New Jersey, Maryland, and Wisconsin—are still denying residents access to these rewards, leaving millions in potential earnings unclaimed.

Coinbase, listed on Nasdaq as COIN, reiterated its commitment to restoring full staking rights nationwide. In a recent update shared on social media, the company highlighted the ongoing restrictions affecting crypto users in these states. According to Coinbase, since June 2023, users in California have missed out on approximately $71 million in staking rewards. New Jersey residents have lost an estimated $12 million, while Maryland and Wisconsin users have been unable to access about $5 million and $3 million respectively.

The company noted that none of the crypto assets staked through its platform have been lost, emphasizing that the withheld rewards are a result of state-level regulatory barriers—not platform failures.

Coinbase also reported progress elsewhere: five states—Vermont, South Carolina, Kentucky, Illinois, and Alabama—have recently dropped their staking-related lawsuits. Alabama was the most recent to do so, officially dismissing its case on April 23. The move followed growing cooperation between the SEC and the broader crypto industry to establish clearer rules governing staking services.

Earlier in February, the SEC itself had withdrawn its federal case against Coinbase, signaling a broader regulatory shift. Still, Coinbase maintains that the fight is not over. The company views staking as a critical feature for securing blockchain networks and enabling broader user participation in the crypto economy.

As legal and regulatory battles persist, Coinbase says it will continue working toward full restoration of staking rights across all U.S. states.

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