Coinbase's Grewal Criticizes Five States for Ignoring CLARITY Act on Staking Services

Coinbase's Chief Legal Officer, Paul Grewal, has publicly criticized five U.S. states for continuing to pursue legal actions against the company's staking services, despite the passage of the CLARITY Act, which explicitly states that staking-as-a-service is not a security. Grewal's frustration stems from the fact that these states—California, New Jersey, Washington, Maryland, and Wisconsin—are ignoring the clear guidance provided by the CLARITY Act, which was passed with strong bipartisan support in the House.

Grewal highlighted that 32 Democratic lawmakers from these states voted in favor of the CLARITY Act, making the states' actions even more perplexing. He emphasized that these state regulators are acting as if the bill never passed, which is causing significant frustration within the industry. The CLARITY Act was designed to provide clarity on the regulatory treatment of staking services, but the lack of alignment between state and federal regulators is creating a confusing and inconsistent regulatory environment.

Grewal called for an end to the patchwork approach of state regulation by enforcement, urging for alignment with Congress on clear, bipartisan crypto rules. He expressed hope that the Senate will quickly move to finalize the legislation started by the House. This call for alignment comes as Coinbase ramps up its lobbying efforts in Washington, with the recent addition of David Plouffe, a former adviser to Kamala Harris and Barack Obama, to its advisory board. The goal is to influence key lawmakers and push for fair crypto regulation.

Coinbase has long advocated for clear regulatory guidelines, and with the CLARITY and GENIUS Acts gaining traction, the platform is urging lawmakers to complete the regulatory framework, particularly regarding staking. Until the Senate acts and state regulators align with federal guidelines, the legal battles surrounding staking services are likely to persist. Grewal's ultimate goal is for regulators to respect the decisions made by Congress, ensuring a more coherent and predictable regulatory environment for the crypto industry.