Coinbase Calls for Unified Crypto Staking Rules Amid State Disputes

Crypto company Coinbase has expressed concerns about the inconsistent handling of crypto staking rules by some U.S. states. Paul Grewal, Coinbase’s Chief Legal Officer, has highlighted that many state agencies are disregarding a crucial aspect of the recently passed CLARITY Act, which explicitly states that staking-as-a-service is not considered a security. Despite this federal clarification, several states continue to pursue legal actions against Coinbase and other crypto firms, creating a fragmented regulatory landscape.

The CLARITY Act, which received strong bipartisan support in Congress, aims to provide regulatory clarity for the crypto industry. One of its key provisions is the exclusion of staking services from securities regulations, which is intended to encourage innovation and growth in decentralized finance (DeFi) services. Grewal emphasized this point on social media, stating that the act confirms staking-as-a-service as a non-security and mandates rule-making to enforce this clarity. However, the situation on the ground remains complex, with five states—including California, New Jersey, Washington, Maryland, and Wisconsin—continuing to enforce their own regulations against Coinbase. This approach contradicts the wishes of 32 Democrats in Congress from these states, who supported the CLARITY Act.

Grewal described this state-level enforcement as a “patchwork of regulation” that hinders innovation and confuses both companies and investors. He called for all states to align with federal law and establish clear, fair rules for the crypto industry. Clear regulations are essential for both companies and users, as they provide a framework for what is permissible and offer better protection for investors. The CLARITY Act’s provisions on staking are a step forward, but more detailed rules are needed to fully realize its benefits. For DeFi projects, this clarity will encourage growth by allowing them to offer staking, lending, and other services with reduced legal uncertainty.

Coinbase is actively engaging in efforts to shape crypto laws in Washington. The company recently hired David Plouffe, a political advisor with extensive experience working for top U.S. leaders. Coinbase aims to advocate for clear, balanced crypto laws that protect consumers while supporting innovation. The crypto community has welcomed the new GENIUS and CLARITY Acts, but the fight for consistent regulation is far from over. States need to stop ignoring federal law and work together to create a unified regulatory framework. Grewal’s call for unity is crucial, as the future of crypto staking and DeFi in the U.S. depends on clear, fair rules that foster industry growth and protect investors.